Final answer:
Adam Smith defined economics based on a laissez-faire, free-market system driven by self-interest and minimal government interference, while Alfred Marshall emphasized the interdependence of supply and demand in determining prices.
Step-by-step explanation:
When comparing the definitions of Adam Smith and Alfred Marshall regarding economics, we see a focus on different aspects of the market system. Adam Smith, often referred to as the Father of Capitalism, believed in a laissez-faire economy where competition and consumer desires drive the market. He posited that an unregulated market would lead to mutual benefits, lower prices, and increased wealth overall due to the 'invisible hand' guiding free trade. On the other hand, Alfred Marshall, writing in the late 19th century, brought forward the equally important roles of supply and demand in determining market prices, comparing them to the two blades of a pair of scissors. Marshall emphasized the interdependence of supply and demand rather than prioritizing one over the other in price determination.
Smith's seminal work, The Wealth of Nations, champions the idea of a free market, minimal government interference, and the power of self-interest to maintain equilibrium in the economy. Meanwhile, Marshall's work in economics highlighted the intricate balance and interaction between supply and demand, suggesting that both must be considered together to understand market dynamics fully.