description Alfred Marshall Overview
Alfred Marshall (1842-1924) was a British economist whose work helped establish neoclassical economics and shape modern microeconomics. His 1890 book Principles of Economics systematically presented supply and demand, price elasticity, consumer surplus, and the distinction between short-run and long-run adjustment. Marshall taught at the University of Cambridge, where his analytical framework influenced generations of economists.
insights Ranking position
Alfred Marshall ranks #1 of 253 in the Economist ranking, ahead of Joseph Schumpeter.
help Alfred Marshall FAQ
What does Alfred Marshall's supply-and-demand scissors analogy mean?
Marshall argued that supply and demand jointly determine price, like the two blades of a pair of scissors jointly cutting paper. The analogy rejects explanations that treat either production cost or consumer demand as the sole cause of value.
Why did Marshall put price on the vertical axis of supply-and-demand diagrams?
Marshallian diagrams conventionally place price vertically and quantity horizontally, a format still used in introductory microeconomics. His Principles of Economics, first published in 1890, helped standardize this visual treatment.
What is Marshall's distinction between the short run and the long run?
In Marshall's short run, some productive inputs or capacities cannot fully adjust, while more factors can change in the long run. This distinction explains why the same industry can show different supply responses over different time horizons.
What did Marshall mean by consumer surplus?
Consumer surplus is the difference between what a buyer would be willing to pay and what the buyer actually pays. Marshall developed the concept as a way to connect demand curves with changes in consumer welfare.
explore Explore More
Similar to Alfred Marshall
See all arrow_forward
Reviews & Comments
Write a Review
Be the first to review
Share your thoughts with the community and help others make better decisions.
