The motivation for general equilibrium theory is the belief that an economy can be understood only as a set of interrelated markets and that any change, for example in economic policy or in preferences, may affect the equilibrium on all markets....

French-born economist who, with MENGER and JEVONS, was a founder of the MARGINALIST School and the first to use GENERAL EQUILIBRIUM analysis. His father, Auguste Walras, had already made use of the concept of marginal utility (or rarété, as...

The state of an economy in which all its markets for consumer goods, capital goods, labour services, financial assets and money are in equilibrium and the economy is in overall balance. The leading MARGINALIST WALRAS was the first economist to set out...

1 The state of market in which balances in several parts occur simultaneously This is represented by a diagram with several points of intersection between, for example, when an aggregate supply curve is linear but the aggregate demand curve is...

General equilibrium theory is a branch of theoretical microeconomics. It seeks to explain the behavior of supply, demand, and prices in a whole economy with several or many markets. In general, general equilibrium tries to give an understanding of the...