Walras's law is a fundamental principle in general equilibrium theory that establishes a mathematical relationship between market supply and demand across an entire economy. The law asserts that because all economic agents face budget constraints, the total value of excess demand across all markets must equal the total value of excess supply—meaning these values sum to zero.
Walras's law is a fundamental principle in general equilibrium theory that establishes a mathematical relationship between market supply and demand across an entire economy. The law asserts that because all economic agents face budget constraints, the total value of excess demand across all markets must equal the total value of excess supply—meaning these values sum to zero.
Source: Wikipedia "Walras's law" · CC BY-SA 4.0
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