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I am a bit confused by the part on "Classical Economics" and the workings of demand and supply. If "classical" is meant to refer to the economics of Smith, Ricardo, etc. the statement is wrong or at least misleading. Take the writings of Adam Smith for an example: Although Smith was well aware of the concept of demand and supply, he saw long-run equilibrium prices as determined by the "natural value" of a product alone, i.e. by its costs of production. As Smith explains in Book I, chapter 7 of his "Wealth of Nations"[1], demand only influences the price of a product in the short-term perspective. The idea that the price of a product could always and not just in the short-term be determined by both supply and demand stems not from classical economics, at least not to my knowledge. As far as I know, this idea is - maybe not first but most prominently - given by Marshall who speaks of the "two blades" of demand and supply, and Marshall is surely no classical "classical" economist.
The inclusion of a large entry on bonds is simply wrong. The market price of a bond is the price that is paid for the bond in the market. Rational pricing
Latest comment: 9 years ago1 comment1 person in discussion
eggheads (BBC show) said there was the abbreviation "S.G." which means "market price",
but obviously latin or archaic.. trouble is I can't find confirmation.
maybe that abbreviation can be here, because I can't imagine Eggheads being hoaxed. (maybe its spurious, such as a misprint or only in spanish, or something ??? ) — Preceding unsigned comment added by 58.167.83.167 (talk) 10:21, 23 June 2014 (UTC)Reply
