The Marginal Revolution

The Marginal Revolution, occurring in the late 19th century, was a fundamental shift in economic thought that introduced the concept of marginal utility, which explains how individuals make decisions based on the additional benefit from consuming one more unit of a good. It clarified how prices are determined by the subjective value consumers place on each extra unit, rather than total amounts. This revolution transformed economics into a more analytical science, emphasizing the importance of individual preferences and choices in shaping market behavior. Economists like William Stanley Jevons, Carl Menger, and Leon Walras played key roles in developing these ideas.