Sunday, January 11, 2009

Economics by Alfred Marshall

Alfred Marshall was a professor at university of Cambridge. He wrote his book "Principles of Economics" in 1980. Marshall has emphasized on material welfare of an individual. He says that "Economics is a study of mankind in ordinary business of life. It examines that the part of individual and social action which is most closely connected with attainment and with use of material requirements of well-being.

Marshall was able to show how value is partly determined by marginal utility of a good and how intensity of want decreases with the units acquired. He gave concept of consumer's surplus, elasticity of demand and laws of returns.

Supply, demand, utility, equilibrium, short run and long run reflect on the astonishing fact that these concepts originally were presented by Alfred Marshall.

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