3.4 — Marshallian Economics I: Demand & Utility — Readings

Wednesday, October 21, 2020

Required Readings:

• Ch.10 (up to Marshall on Supply) “Alfred Marshall and Neoclassical Economics” in Landreth & Colander
• Ch.9 “Marshallian Economics: Utility and Demand” in Blaug

Recommended Readings:

• Marshall, Alfred, 1920 (1890), Principles of Economics (8th ed.)

The following Wikipedia entries can also provide more background:

• Alfred Marshall
• Partial equilibrium
• Utility
• Price elasticity of demand
• Economic surplus

Questions to Help Your Reading

• What is the definition of economics, according to Marshall
• What is the proper way to study economics, and what is the role of mathematics, according to Marshall?
• What do you recognize from your principles & intermediate microeconomics courses from Marshall?
• What are the problems with Marshall’s approach to utility functions?
• What are the problems with Marshall’s approach to measuring price and utility?
• What is the rule for consumer maximization of utility?
• What is the “marginal utility of money” according to Marshall, and how does it play a role in utility maximization?