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๐Ÿ’ฐ Economics

Adam Smith, David Ricardo, Alfred Marshall (public domain) · Wikipedia (CC BY-SA 4.0).

Classical economics translated into runnable code and diagrams. Smith wrote for merchants, Ricardo for Parliament, Marshall for Cambridge students. These pages translate to Python and Scheme.

Quantity Price D S equilibrium Q* P*
Chapter
1. Division of Labor Specialization multiplies output: one worker makes one pin, ten workers make 4,800 ๐Ÿ’ฐ
2. Supply and Demand Demand slopes down, supply slopes up, price settles where they cross ๐Ÿ’ฐ
3. Comparative Advantage Both countries gain from trade even when one is better at everything ๐Ÿ’ฐ
4. Diminishing Returns Each additional unit of input yields less additional output ๐Ÿ’ฐ
5. Elasticity How much quantity responds to a price change, and why it matters for revenue ๐Ÿ’ฐ
6. Marginal Utility Each additional unit is worth less than the last ๐Ÿ’ฐ
7. Opportunity Cost The cost of any choice is the best alternative you gave up ๐Ÿ’ฐ
8. Market Equilibrium Surplus drives price down, shortage drives price up, until the market clears ๐Ÿ’ฐ

๐Ÿ“บ Video lectures: MIT 14.01 Microeconomics ยท Yale ECON 252: Financial Markets (Shiller)

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