“The General Equilibrium Analysis”, which studies the simultaneous equilibrium of multiple markets in an economy, was developed by which economist?

Introduction / Context:
In economic theory, general equilibrium analysis examines how multiple markets in an economy can be in equilibrium at the same time. Instead of studying one market in isolation, it looks at the interdependence of prices and quantities across all markets. This question asks you to identify the economist credited with developing this systematic general equilibrium framework.

Given Data / Assumptions:

• The focus is on “The General Equilibrium Analysis” in economics.
• It involves simultaneous equilibrium across many markets.
• The options list several classical and neoclassical economists.
• We must recall which economist is historically linked to this analysis.

Concept / Approach:
Léon Walras, a French economist, is widely recognized as the founder of general equilibrium theory. He developed mathematical models showing how supply and demand in multiple markets could be balanced simultaneously through a system of equations and a hypothetical auctioneer adjusting prices. Marshall is famous for partial equilibrium analysis focusing on individual markets. Ricardo contributed to classical theories of value and distribution, and Adam Smith laid foundations of modern economics with ideas on the invisible hand and division of labour. Among the options given, Walras is clearly associated with general equilibrium analysis.

Step-by-Step Solution:
Step 1: Understand that the question is about the economist who developed the formal general equilibrium approach. Step 2: Recall that Walras introduced a system of simultaneous equations to represent all markets in an economy. Step 3: Recognize that Marshall's work focuses more on partial equilibrium in a single market, not general equilibrium across all markets. Step 4: Choose Walras as the economist who developed general equilibrium analysis.

Verification / Alternative check:
To verify, think of the term “Walrasian general equilibrium”, which is standard in microeconomics textbooks. The term itself directly links Walras to the general equilibrium concept, and many models are called Walrasian models. No similar direct association exists between general equilibrium and the other economists listed, confirming that Walras is the correct answer.

Why Other Options Are Wrong:
Marshall: Known for partial equilibrium analysis using supply and demand curves for individual markets, consumer surplus and elasticity concepts, not for the full general equilibrium system.
Ricardo: Associated with theories of comparative advantage and distribution, but not with general equilibrium analysis in the Walrasian sense.
Adam Smith: Famous for foundational ideas in economics including the invisible hand and division of labour, but he did not develop formal general equilibrium analysis.

Common Pitfalls:
A common mistake is to see the word “equilibrium” and automatically associate it with Marshall, given his work on supply and demand curves. However, the phrase “general equilibrium” is a strong clue pointing specifically to Walras. Remembering the phrase “Walrasian general equilibrium” helps you quickly identify the correct economist in such questions.

Final Answer:
“The General Equilibrium Analysis” was developed by Walras.