7it

CONTENTS

CHAPTER 11

DEMAND AND VALUE

AUTHORITIES
MARSHALL . . “Principles of Economics,” Book III,
Jevons . . . “Theory of Political Economy,” Chapter III,
WIESER . , . “Natural Value,” Book I.
PANTALEONI . ‘Pure Economics,” Chapters III. IV.

PAGES
Valuations of goods and services guide economic action in all departments.
Value not inherent in goods, but results from their relation to wants.
Wants of different persons not comparable, but the prices they pay for
equal means of satisfaction can be compared. Demand-price, its -variation
 with the amount of supply. Exception to principle of diminishing
utility, apparently, when goods in general, rather than some particular
good, are concerned. What constitutes satiety? The desire for variety
of satisfaction, Order of urgency of wants, Distinction an object in
conspicuous expenditures. New orders of wants develop as resources
expand. Elasticity of demand and its measure. Utility afforded by
goods not decreased when additional supplies of them permit their use
in affording lesser utilities. Intra-marginal utilities secured at equal cost
with marginal utilities. The total utility of a supply of goods a
measure of the importance of that supply. Commodities of great importance
 may have small value, Decrease of values of goods conducive
to welfare, which is yet not a consequence of decrease of wealth. Need
stimulates to exertion while unearned abundance leads to stagnation.
Changes of demand due to changes in values of goods or to changes in
the need for them. Only the latter involves a real change of conditions
of demand .

20-11

CHAPTER III

EXCHANGE AND MARKETS

AUTHORITIES
HoBsON . . The Economics of Distribution,” Chapter I.
MARSHALL . Principles of Economics,” Book V, Chapter I. and
Note nn Barter. Book V. Chanter TI.

Personal estimates of the relative values of goods vary with the person
making them. Primitive exchange. Changes in supplies held by
traders modify the limits of possible terms of exchange. Differences of
bargaining capacity lead to variation of results. Conditions of a unique
rate of exchange. Influence of numerous traders on each side.
Markets and their influence on the terms of exchange. The bearing of