102 ECONOMIC ESSAYS IN HONOR OF JOHN BATES CLARK
in bargaining power whether secured through voluntary or state
action, as a leftward movement of the supply curve of the factor.
It would probably not be
characterized by a uniform
 elasticity throughout
 its course but for the
purpose of simplifying
our analysis, we shall assume
 that there is such a
uniformity. This, however,
 is not nearly so important
 relatively as the
fact that the elasticity is
on the whole less than
before. And this is the
point which should be
stressed and the effects of
which will be traced.

B. The Effects of Changes in Bargaining Power.
We may now proceed to examine what would be the effects
of increase in bargaining
power under different sets
of elasticities of supply
and we may use for the
first case, that of complete
 inelasticity of supply
 of both factors. We
may represent in Figure
17 the line AS as characterizing
 the original
supply curves for both X
and Y. But with the improvement
 in the bargaining
 power of X, the
supply “curve” of that
factor, while continuing
to be inelastic, moves to the left to the point B. At various
prices equal amounts of X will be offered but they will in
each instance be less than what was offered before. The ratio

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