Packet J: Tossup 17

Because it implies a type of curve is not “well-behaved,” a result named for Sonnenschein and Mantel suggests that this concept may not be predictably unique. An “approximate” form of this concept can be bound to “convexified” economies in an application of the Shapley–Folkman lemma. Prices are adjusted in a process that explains this concept called tâtonnement (“tah-tun-MAWN”). Using Kakutani’s fixed (10[1])point theorem, Walrasian theorist (10[2])Lionel W. McKenzie provided proof for a “general” form of this (10[2])concept (10[6]-5[2])extended by (10[3])Kenneth Arrow (10[1]-5[2])and Gérard (10[1]-5[1])Debreu. (10[2]-5[1])When this (-5[2])concept is not achieved, (10[1]-5[1])economic efficiency (10[1])decreases, (10[4])forming (10[1])a deadweight (10[1])loss. (10[5]-5[3])For (10[1])10 (10[3])points, (10[6])supply (10[1])and demand (10[2]-5[1])curves (10[1])meet (10[3])at a point (10[5])named after (10[2])what (10[5])concept (10[4])to achieve (-5[1])balance? (10[2])■END■ (10[15])

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