A Further Look at Demand

Abstract

Economic choice, whether by consumers or producers, takes place at the margin. This is the basis of both the theory of demand and the theory of supply. Indeed this is simply an aspect of ‘opportunity cost’ for, in allocating resources, both the consumer and the producer will be asking: Tf I have an extra bit of this or an additional unit of that, will it be worth what I have to give up for it?’