Neoclassical Economics

Neoclassical Economics

Neoclassical economics bases its explanations of economic phenomena – production of goods and services, pricing, consumption of goods and services – on the fundamentals of supply and demand. Supply of and demand for goods and services by nominally rational people acting on perfect information and seeking optimum satisfaction from their consumption create the parameters that drive the allocation of limited resources as well as the growth or expansion potential of those resources.

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