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Microeconomic Theory Tanima Dutta, Lovely Professional University
Notes
Unit-26: General Equilibrium Theory
CONTENTS
Objectives
Introduction
26.1 Problems of Existence, Stability and Uniqueness of General Equilibrium
26.2 The Walrasian General Equilibrium Model
26.3 2 × 2 × 2 Graphical General Equilibrium Model
26.4 Summary
26.5 Keywords
26.6 Review Questions
26.7 Further Readings
Objectives
After studying this unit, student will be able to:
• Know Problems of Existence, Stability and Uniqueness of General Equilibrium.
• Study The Walrasian General Equilibrium Model.
• Understand Graphical General Equilibrium Model.
Introduction
In this unit, you can learn The Walrasian General Equilibrium Theory, Graphical 2 × 2 × 2 General
Equilibrium Model and the significance of general equilibrium, stability and uniqueness problems.
Marginal equilibrium, general equilibrium and other equilibrium theories have included in the first
unit of the book “Concept of Equilibrium”.
26.1 Problems of Existence, Stability and Uniqueness of General
Equilibrium
Problems of Existence, Stability and Uniqueness of General Equilibrium are included in general
equilibrium analysis. It is described by the demand and supply curves of marginal equilibrium and
the results are used in general equilibrium analysis.
370 LOVELY PROFESSIONAL UNIVERSITY