112 ECONOMIC ESSAYS IN HONOR OF JOHN BATES CLARK 
effect of (1) its relative elasticity of supply and (2) its share 
of the total product can be obtained by multiplying the former 
by the ratio of the share of the other to the one in question. 
Thus, if the elasticity of X were .5 and if it received one-third 
and Y two-thirds of the total product, then the relative change 
in the quantity of X, which an increase in the return to each 
unit of Y would occasion, would be the same as that caused by 
2 
) 3 
an elasticity of supply of 1.0 for X (ie. .5x—=.5%x2 = 1.0). 
1 
[3 
If X received but one-fourth of the total product, it would be 
3 
4 
identical with an elasticity of 1.5 i.e, .5 x — 
1 
1 
Where, however, there is an increase or decrease in the net 
effectiveness of industry, both factors will tend initially to be 
affected to the same relative degree whatever may have been the 
share of the total product which each originally received. For a 
decline of five percent in the total product would virtually tend 
to be distributed over the factors in the same proportion which 
each originally secured, let us say in the ratio of two-thirds and 
one-third, and this would mean that the remuneration per unit 
would decline by five percent for each factor. An increase in the 
net effectiveness of industry of a given percentage would also tend 
to be initially reflected for both factors in equal percentage 
increases in reward per unit. 
In these cases, therefore, the relative proportion of the product 
secured by the factors does not affect the final result. The 
relative elasticity of supply will determine the nature and degree 
of the alterations in the supply which a given change in effective- 
ness will create and consequently will shape the ultimate equi- 
librium which will be established. 
9. Other Factors 
But there are still other forces which must be plumbed and 
whose influences upon distribution must be analyzed. The most