Walras’ Law implies that if there are \( N \) markets in the economy, then one only needs to find equilibrium prices in
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- \( N - 2 \) markets
- \( N - 1 \) markets
- \( N + 1 \) markets
- all the \( N \) markets
The Correct Option is B
Solution and Explanation
Step 1: In a general equilibrium system, the number of independent equations is \( N - 1 \), because the market for one good can be determined by the others.
Step 2: Conclusion.
Thus, only \( N - 1 \) markets need to be solved for equilibrium prices.
Final Answer: (B) \( N - 1 \) markets
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