ABSTRACT
When asked to define the focus or purpose of economics, most laypersons respond by saying that economics is the study of supply and demand. It is true that traditionally much of economics has considered the workings of the economy by crafting analysis in terms of demand and supply, what some refer to as the ‘Marshallian scissors’. Generally, demand is equated with consumption, and supply with production. The dual distinction has led to the separation of much of economic theory into models of production and of consumption. Neoclassical economics, built as it is on a consumer and firm (producer) maximising calculus, is an example of this dichotomous approach.
