According to Hobson, the ultimate cause of imperialism needed to be found in its “economic taproot". What difficulties did Walras have in order to demonstrate that market forces could automatically correct disequilibrium? 2. What is General Equilibrium? Explain how Walras set up the general equilibrium model. In a context of two commodities (X and Y), give a simple and brief proof that a utility- maximizing consumer would exchange the two commodities up to the point where the relative ratio of marginal utility between the two commodities exactly equals their relative price ratio. Jevons demonstrated that consumers' demand behavior could be derived from consumer's utility maximization. Answer any two out of the following three questions: 1.
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