ABSTRACT
William Stanley Jevons (pronounced Jev-uns, with a short e) is best known for developing a theory of relative prices, or exchange values, 76based upon the notion of marginal utility. In contrast to early nineteenth-century classical economists, who held that the costs of production determined relative prices, Jevons argued that relative prices depend upon subjective assessments by people of the satisfaction to be gained from purchasing different goods. Jevons also made contributions to growth theory and business cycle theory.
