Alfred Marshall was born in London to a middle-class family, in 1842. He studied math at St. John's College, Cambridge. His specialty was in microeconomics rather than macroeconomics. In his most famous work,"Principles of Economics", he emp hasized that the output and price of a good are determined by both supply and demand. Marshall originated the concept of the price-elasticity of demand and the concept of consume surplus, (the difference between the consumer's value of all units bought and the amount paid for the units)..
Marshall also placed important emphasis on the time element of the problem, in which he distinguishes three time periods: 1.) momentary equilibrium - when the stock of a commodity is fixed. 2.) short-run equilibrium - When firms can produce more by adding labour and other inputs but not by adding capital. 3.) Long-run equilibrium - when fixed costs (capital) can be increased.
Works by Alfred Marshall:
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