. Papers : literary, sicentific, & fine the sense in which somewords will be used. The ivliole supply of an article will be taken to mean thewhole (piantitij of the article for sale there and then. Supplyis in this sense mensurable, and can be expressed in tons, From Recess Studies. Edited by Sir Alexander Grant. Edinburgh, 1870. LA IVS OF SUP PL V AND DEMAND 77 quarters, etc. Sujjply at a price denotes tlio quantit;/ which at agiven price holders would be, then and there, willing to at a price is also mensurable. Demand at a price denotesthe quaidiiij which, then and there, buy
. Papers : literary, sicentific, & fine the sense in which somewords will be used. The ivliole supply of an article will be taken to mean thewhole (piantitij of the article for sale there and then. Supplyis in this sense mensurable, and can be expressed in tons, From Recess Studies. Edited by Sir Alexander Grant. Edinburgh, 1870. LA IVS OF SUP PL V AND DEMAND 77 quarters, etc. Sujjply at a price denotes tlio quantit;/ which at agiven price holders would be, then and there, willing to at a price is also mensurable. Demand at a price denotesthe quaidiiij which, then and there, buyers would purchase atthat price. The supply at a price and the demand at a price in anygiven market will probably vary with the price; they may besaid to be functions of the price. Let a curve be drawn, the abscissae of which represent prices,and the ordinates the supplies at each price. This curve will becalled the suppily curve. A similar curve, constructed with thedemand at each price as ordinates, wdll be called the demand 10 20 SO 40 60 CO 70 SO Sliilliii|i Fig. 1.—First Law of Supply and Demand. Whole supply for sale at any price, 1,400 quarters of wheat. Price at which whole supply would be sold, 906-. Price at which whole supply would be bought, 20^. Market price, 50^. Price below which no sale could take pace, Price above which no sale could take place, 62^. Quantity which will be sold, 800 quarters. Fig. 1 shows a pair of imaginary demand and supply curvesfor corn. At 60s. per quarter the supply is 1,000 quarters ; athhs. the supply is 900 quarters ; at 50s. only 800 quarters ; at45s. only 600 quarters; at 40s. the supply is nil. At 62s. the demand is nil; at 55s. only 600 quarters; at50s. it is 800 quarters; at 45s. 900 quarters; at 40s. 1,000quarters; and continues to rise fast at lower prices. The first law of demand and supply may now be stated asfollows :— 78 POLITICAL ECONOMY Prop. 1, In a given market, at a given time, the market priceof the c
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