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5

First, the Sonnenschein-Mantel-Debreu theorem has nothing to do with demand functions. It is a result about excess-demand functions, which represent demand minus supply. They are formulated in the context of an exchange economy in which no production happens. The result says that if one only looks at prices that are not too close to zero, any continuous ...


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So recently I have been thinking a lot about this fundamental question: Does the Sonnenschein-Mantel-Debreu theorem disprove the "Law of Demand"? It contradicts law of demand as a general law but it is worth noting that the law of demand is for over a century not considered actual general law but just a special case that is simply applicable to ...


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