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Show I ~ 66 ON THE NATURE AND [cH.II. The detnand for a con1modity has been defined to be, the will combined 'vith the power to purchase it. . . The greater i" the degree of th1s ":rill and po\ver withreo·ard to any particularcomn1ochty, the greater or the ~ore intense tnay be fairly said to be tbe den1and for it. But hovtrever great this will and power n1ay be atnong the purchasers of~ con1~0- dity, none of then1 will be disposed to gtve a h1gh price for it, if they can obtain it at a lo\¥ one; and as long as the abilities and con1petition of the sellers induce then1 to bring the quantity wanted to tnarket at a lo\v price, the real intensity of the demand \\rill not shew itself. If a given number of commodities, attainable by labour alone, were to becon1e n1ore difficult of acquisition, as they \vould evidently riot be obtained unless by means of increased exertion, we might surely consider such increased exertion, if applied, as an evidence of a greater intensity of detnand, or of a power and \vill to tnake a greater sacrifice in order to obtain them. In fact it may be said, that the giving a greater price for a cotnn1odity absolutely and necessarily implies a greater intensity of den1and; and that the real question is, \vhat are the causes ' ,vhich either call forth or render unnecessary the expression of this intensity of den1and? It has been justly stated, that the causes '\tvhich tend to raise the price of any article estirnated in some comrnodity named, and supposed for short periods not essentially to vary, are an increase in SEC. II. J ' l\IEASURES OF VALpE. 67 the number or \Vantsof its purchasers, ora deficiency in its supply; and the causes which lower the price are a diminution in the number or wants of its purchasers, or an increased ~bundance in its supply. The first class of these causes is obviously calculated to call forth the expression of a greater in· tensity of den1and, and the other of a less. If, for instance, a comrnodity -\vhich had been habitually demanded and consutned by a thousand purchasers were suddenly to be wanted by t'vo thousand, it is clear that before this increased ex· tent of demand could be supplied, son1e n1ust go without \Vhat they "'ranted; and it is scarcely pos-· sible to suppose that the intensity of individual demand vvould not increase atnong a suf-ficient number of these tvvo thousand purchasers, to take .off all the comtnodity produced at an increased price. At the same time, if we could suppose it possible that the -vvills and powers of the purcha ... sers, or the intensity of their den1and, would not admit of increase, it is quite certain that, however the matter might be settled atnong the contending competitors, no rise of price could take place. In the san1e manner, if a con1rnodity 'vere to be · din1inished one half in quantity, it is scarcely possible to suppose that a sufficient number of the former purchasers -vvoulcl_ not be both willing and able to take off the \IV hole of the din1inished quantity at a higher price; but if they really would not or could not do this, the price could not rise. On the other hand, if the pern1anent cost of pro .. clueing the co1nn1odity "\tvere doubled, it is evident :F 2 |
