Abstract
In this chapter a price and quantity adjustment process is described to obtain a Walrasian equilibrium in the economy. At a Walrasian equilibrium price system the supply is equal to the demand for every commodity. For an arbitrary price system it holds that the total excess demand for some commodities is negative, while for other commodities it is positive. A Drèze equilibrium can then be obtained by rationing in the markets for the non-numeraire commodities.KeywordsPrice LevelAdjustment ProcessPrice SystemDemand RationingLabelling FunctionThese keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.
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