Principles of Economics

References

Principles of Economics

work by Marshall

Written by

The Information Architects of Encyclopaedia Britannica

Last updated

July 13, 2026

Quick Summary

Alfred Marshall's Principles of Economics (1890) is a foundational text in neoclassical economics. It introduced key concepts like elasticity of demand, consumer's surplus, and the representative firm. Marshall emphasized that prices and output are determined by the interplay of supply and demand, likening them to the two blades of a pair of scissors. This work helped reconcile classical cost-of-production theories with the marginal-utility principles developed by economists like William Jevons and the Austrian school. Marshall's approach focused on partial equilibrium analysis, examining specific markets and industries.12

Summary created from Britannica articles using AI. AI can make mistakes, so verify using Britannica articles.

2 Britannica Sources

Ask Britannica AI about this topic

Britannica doesn't have a full article on this topic, so we've curated a list of our relevant coverage.

Alfred Marshall
Marshall’s Principles of Economics (1890) was his most important contribution to economic literature. It was distinguished by the introduction of a number of new concepts, such as elasticity of demand, consumer’s surplus, quasirent, and the representative firm—all of which played a major role in the subsequent…
Read More
Marshall’s Principles of Economics (1890) was his most important contribution to economic literature. It was distinguished by the introduction of a number of new concepts, such as elasticity of demand, consumer’s surplus, quasirent, and the representative firm—all of which played a major role in the subsequent…
Read More

market
Alfred Marshall, whose Principles of Economics (first published in 1890) was for long an authority for English-speaking economists, based his definition of the market on that of the French economist A. Cournot:
Read More
Alfred Marshall, whose Principles of Economics (first published in 1890) was for long an authority for English-speaking economists, based his definition of the market on that of the French economist A. Cournot:
Read More

Milton Friedman
Early life and education
introduced him to Alfred Marshall’s Principles of Economics, and Friedman later would approvingly quote Marshall’s description of economics as “an engine for the discovery of concrete truth.” Friedman always insisted that the study of economics was not merely a mathematical game and that it should enable one to understand how…
Read More
introduced him to Alfred Marshall’s Principles of Economics, and Friedman later would approvingly quote Marshall’s description of economics as “an engine for the discovery of concrete truth.” Friedman always insisted that the study of economics was not merely a mathematical game and that it should enable one to understand how…
Read More

utility and value
Cost-of-production analysis
…English economist Alfred Marshall (Principles of Economics, 8th ed., 1920), considers prices to be determined simultaneously by cost and demand considerations. The analysis also recognizes the complex interdependencies in the system, with demands and supplies of various commodities affecting one another.
Read More
…English economist Alfred Marshall (Principles of Economics, 8th ed., 1920), considers prices to be determined simultaneously by cost and demand considerations. The analysis also recognizes the complex interdependencies in the system, with demands and supplies of various commodities affecting one another.
Read More