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Classical Economics and Ye Olde Supply and Demand Curves

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“In 1890, the English economist Alfred Marshall suggested that if a parrot were trained to answer ‘supply and demand’ to every question it was asked, the parrot could be given a degree in economics.” [1]

If you studied Economics 101 at some point you probably learned about Alfred Marshall’s supply and demand curves. The intersection of the two lines was meant to indicate where price levels would stabilize in a “perfect” marketplace.

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