Neoclassical Movement

The Neoclassical Movement in economics emerged in the late 19th century, emphasizing the use of individual choices and preferences to explain how markets allocate resources. It shifted focus from classical theories of production to how consumers and producers make decisions based on prices, utility, and costs. Key ideas include supply and demand determining prices and the notion that individuals act rationally to maximize their benefits. This approach laid the groundwork for modern microeconomics, providing a framework to analyze how markets function efficiently under competitive conditions.