86 ECONOMIC ESSAYS IN HONOR OF JOHN BATES CLARK 
A factor may retain the same elasticity but by a fractional 
movement of its supply schedule to the left it will supply at the 
same price less than before. 
We may now proceed to come to closer grips with the prob- 
lem. Assuming that we are dealing only with one commodity and 
with two factors, we shall 
try to determine what the 
effects of various elastic- 
ities of supply of the fac- 
tors will be under the 
three following sets of 
changes: 
1. An increase in the 
effectiveness of industry. 
This might be caused by 
an improvement of tech- 
nical processes, by inven- 
tions, or by a gain in the 
exchange rate of the com- 
modity produced in this 
community as compared 
with those produced in other communities. 
2. A decrease in the effectiveness of industry. This in turn 
might result from a war, from a loss in social vitality or by a 
decrease in the exchange ratio between this and other 
communities. 
3. A change in the bargaining powers of the factors. A fuller 
discussion as to what constitutes bargaining power will be given 
in a later section, but here it is enough to define such a change as 
occurring when one factor improves its relative strength in this 
regard over its former status. 
Js 
5. Elasticities of Supply in Relation to Increases in the Effective- 
ness of Industry 
Let us assume that without any initial change in the quan- 
tities of the factors the effectiveness of industry increases by 
let us say, one-third. What then is the effect which this has, 
under varying elasticities, upon (1) quantities of factors offered, 
(2) the return per unit of each factor and (3) the proportion of 
the total product received?