Solution

ID: past-exam-of-the-mathematics-course-of-the-university-of-cambridge/2004/iii/paper-36/3/c/solution

Use the same Kakutani fixed-point theorem pair as in part (b). If any coordinate of vanished, the additional boundary condition would force some coordinate of every member of , including , to be positive. This contradicts . Hence for every .
Now Walras law reads , a sum of nonpositive terms with strictly positive coefficients. Every term must vanish, so
The boundary hypothesis first excludes boundary prices; strict positivity of all prices then turns nonpositive excess demand into exact market clearing.

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