104 ECONOMIC ESSAYS IN HONOR OF JOHN BATES CLARK
from A towards B. But the supply will not fall to B because
as it moves towards this point, marginal productivity will
rise and this will break the force of the fall. It cannot return
to A however, because of the initial change in quantities which
the moving of the supply curve of X to the left effected. The
point of new equilibrium will therefore be when B quantities of
X and approximately C quantities of Y will be supplied, and
with a unit return to Y of Ps; and to X of Ps. The factor X
would therefore have enhanced its former return per unit while
Y would lose, but the losses and the gains would not be as great
as when Y as well as X was completely inelastic.
Let us now assume (Figure 19) that the initial elasticities of
the supply curves of both X and Y are 1.0 and that they are both
represented by the curve 8, and that the supply of the two
factors originally offered
was that represented by A
with the rate of payment
P or AS. X now secures
added bargaining strength
and its elasticity decreases
from 1.0 to .9, and the
new supply curve being
represented by X; so that
at the price P, only B instead
 of A units as before
are offered. This sets into
motion the familiar train
of consequences. But as
a result of the marginal
productivity of X rising
to P; the supply of X will expand while that of Y will contract.
There will thus be a double force at work to restore the original
equilibrium. The combined movement will restore the ultimate
marginal productivities of each factor nearer the original equilibrium
 than was the case when we were dealing with 1.0 and
sero elasticities. But it will not completely restore it since the
fact that the elasticity of X was .9 will mean that the supply of
this factor will not increase as rapidly as a result of its increase in
remuneration as that of Y will decrease. The effect of the initial
change in elasticities will therefore not be completely removed.
There will be some change in the ultimate amounts paid for units

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