Asked by Abhijith Jayakumar on Jun 04, 2024
Verified
Statement I: Much of the analysis of supply and demand is based on the work of Alfred Marshall over a century ago.
Statement II: When Alfred Marshall compared the determination of price by supply and demand to the blades of a scissors,he was implying that one was no more important than the other in determining price.
A) Statement I is true and statement II is false.
B) Statement II is true and statement I is false.
C) Both statements are true.
D) Both statements are false.
Alfred Marshall
He was a prominent British economist in the late 19th and early 20th centuries, best known for his significant contributions to the principles of microeconomics.
Price Determination
The process by which the prices of goods and services are established based on supply and demand conditions.
Supply and Demand
The fundamental economic model describing how prices vary as a result of a balance between product availability and the desire of buyers.
- Comprehend the connection between supply, demand, and alterations in prices.
- Identify the differences between shifts in demand and supply and alterations on the demand and supply curves.
Verified Answer
AY
Amber YoungJun 10, 2024
Final Answer :
C
Explanation :
Statement I is true as much of the analysis of supply and demand is indeed based on the work of Alfred Marshall. Statement II is also true as Alfred Marshall used the analogy of the blades of a scissors to explain that both supply and demand are equally important in determining the price of a good.
Learning Objectives
- Comprehend the connection between supply, demand, and alterations in prices.
- Identify the differences between shifts in demand and supply and alterations on the demand and supply curves.