Talk:Principles of Economics/Supply And Demand Model

The following pages need to be merged here.

Microeconomics/Supply and Demand Macroeconomics/Supply and Demand

"The principle of supply and demand is one of the best-known principles of economic theory. It was first posited by Jean-Baptiste Say, an 18th-century Classical Political Economist who suggested that demand and supply are interrelated. His theory was that the higher demand there is for something, the more people want it. The more that people want it (the more they value it), the more they are willing to pay for it. For example: There are 100 dolls and 400 people that want those dolls. Since there are more people that want dolls than there are dolls, people will pay more money for them.

Alfred Marshall, a famous neoclassical economist, went further in the mid-20th century and argued developed a mathematical model of supply and demand. The two variables in this theory are price and amount."{Introduction to Economics}

DettoAltrimenti 01:56, 28 July 2006 (UTC)