ECON 307

In Class Exercise Seventeen - The Marginal/Subjectivist Revolution

1.  What are the two elements (ideas) discovered during the subjectivist/marginal revolution?

2.  Given those discoveries, explain how market prices are determined using Menger's analysis - relate this to the supply and demand model.

3.  What is Jevon's utility function?

4.  Explain Jevon's equimarginal principle when prices are given.

5.  What is the idea of General equilibrium espoused by Walras?  What were his two steps in formulating the equilibrium?

6.  What is the Walrasian auctioneer?  How does "tatonnement" (groping) fit into your answer?  Show this on a supply and demand graph.

7.  What "famous" textbook model did the Walrasian theories of general equilibrium lead to (formulated eventually by Hicks)?

8.  Why is Menger considered "radical" and different from Jevons and Walras?

9.  Any other questions on this material?