3 ms·
This seems like it's covered under 3 and 9a. Mr. A has a demand for X and Mr. B has a demand for Y. Wealth can be created by a combination of 3 (making whatever
by awillen 5y ago
This seems like it's covered under 3 and 9a. Mr. A has a demand for X and Mr. B has a demand for Y. Wealth can be created by a combination of 3 (making whatever it is they have a demand for) and 9a (creating a marketplace that matches their demands with whoever can supply them).
- alan-crowe 5y agoNumber 3 exhibits the over simplification that I claim misses something important. Number 3 leads you down the path of thinking that society can only get more wealth by more transformation. Nothing in 3 allows for creating wealth by swapping jobs round to make workers happier. 9a does not, in itself, go beyond the Marginal Revolution. In the basic version of marginalism, the demand curve slopes down because every-one, uniformly, has less appetite for extra when they are already well supplied. And the supply curve slopes up as production is pushed to include less fertile land or to refine from less concentrated ore. Diverse preferences over production and consumption are an extra twist to the story.