Economy, asked by anish877829, 1 year ago

give neo classical definition of economics

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Answered by Anonymous
1
Neo-classical economics is a theory, i.e., a school of economics – that believes that the customer is ultimately the driver of market forces. By market forces, they mean price and demand. The school believes this because the consumer’s aim is customer satisfaction, while the company’s goal is profit maximization.

It is a theory that concentrates on how the perception of the usefulness of products influences supply and demand.

We can also write the word ‘neo-classical’  without the hyphen, i.e., neoclassical. If you are writing a text, you must stick to one type of spelling throughout that document.

It is an economics approach that relates supply and demand to individuals’ rationality. It also relates to people’s ability to maximize utility and profit. Additionally, neo-classical economics increases the use of mathematical equations from its predecessor, classical economics.

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