Part 3/9:
The transition from Classical Economics to modern economics is marked by what is known as the Marginal Revolution. This pivotal moment introduced the concept of marginal utility—the idea that the value of goods and services is determined not just by the total labor put into them, but by the value derived from consuming the last unit.
This shift also opened the door to mathematical modeling in economics, allowing economists to graph relationships between variables such as supply and demand, thereby establishing a more empirical framework. This approach eventually gave rise to different interpretations of how economies function, leading to various competing schools of thought.