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Show 68 ON THE NATURE AND [CH. II. that only such a quantity could be permanently produced as would supply the wants of those who "vere able and \villing to make a sac.rifice for the attainn1ent of their \vishes equal to double the arrtount of \vhat they did before. The quantity of the commodity vvhich \voulcl be brought to n1arket under these circumstances might be extren1ely different. It tnight be reduced to the supply of a single individual, or might ren1ain precisely the san1e as before. If it were reduced to the supply of a single individual, it 'vould be a proof that only one of all the fanner purchasers was both able and \villing to n1ake an effective den1and for it at the advanced price. If the supply retnained the satne, it 'vould be a proof that all th~ purchasers \vere in this state, but that the expression of this intensity of demand had not before been rendered necessary. In the latter case, there \vould be the same quantity supplied and the same quantity detnanded; but there \vould be a much greater intensity of demand called forth; and this may be fairly said to be a most in1portant change in the relation bet\ veen the supply and the de1nand of these con1- modities; because, \vithout the increased intensity of demand, \vhich in this case takes place, the conlmodity \vould cease to be produced ; that is, the failure of the supply \vould be contingent upon the failure of the po\ver or \Vill to n1ake a areater sacrifice for the object sought. 0 Upon the san1e principles, if a comn1oclity 'v:rc to becon1e n1uc.h more abundant, con1parecl w1th the forn1er nun1ber of purchasers, this in- MEASURES 01<1 VALUE. 69 creased supply could not be all sold, unless the price were lowered. Each seller wishino- to dis- • b pose ot that part of the con1modity which he pos ... sessed \Votdd go on lo\vering it till he had effected his object; and though the wills and povvers of the old purchasers n1ight ren1ain unditninished, yet as the con1modity could be obtained \vithout the expression of the same intensity of den1and as before, this dernand would of course not then shew it.self. A similar effect would obviously take place from the consumers of a cornn1odity requirino- a less quantity of it. 0 It: instead of a temporary abundance of supply con1pared \vith the detnand, the cost of producing any particular con1n1odity were greatly diminished, the fall of price \vould in the same manner be occ~ sioned by an increased abundance of supply, either actual or contingent. In ahnost all practical cases it \vould be an actual and permanent increase, because the competition of sellers would lo\ver the price; and it very rarely happens that a fall of price does not occasion an increased consumption. On the supposition, however, of the very rare case that a definite quantity only of the COn1modity was required, whatever n1ight be its price, it is obvious that fro1n the con1petition of the producers a o-reater • b quanttty \vould be brought to market than could be consun1ed, till the price was reduced in. proportion to the increased facility of production; and this excess of supply would be ~lways continaent h . 5 on t e ctrcutnstance of the price being at any time higher than the price which retl,1rns average profits. FS |
