Marshallian Economics

Marshallian Economics, developed by Alfred Marshall, focuses on understanding how individuals and firms make decisions about buying and selling goods and services. It emphasizes the concept of supply and demand—how prices are determined by the balance between what people want and what is available. Marshall introduced the idea of marginal analysis, meaning decisions are made based on the additional benefit versus the additional cost of a choice. This approach helps explain market behavior, price formation, and resource allocation in a way that links consumer preferences with how businesses respond to changes in the market.