Answer to Question #320561 in Economics for Mark

Question

Explain the main contribution for Leo Walrus, Economist of neo-classical school of Economic Thought and how his contributions have improved the modern day understanding and application of Economics.

( In 400 words)

Answer 1

Walras's law is an economic theory, which states that the existence of excess supply in one market must be matched by excess demand in another market so that both factors are balanced out. Walras's law asserts that an examined market must be in equilibrium if all other markets are in equilibrium.