. Papers : literary, sicentific, & r all materials. In some it will have thecharacter of curve 1 in Fig. 12—terminating almost abruptly /.AIVS OF SUPPLY AND DEMAND 91 at a given price, and shooting very rapidly upwards, so as to benearly vertical; this characterises the case of articles which, ata given price, can be produced in almost unlimited quantities,there being no material limit to their production in amountsimmensely superior to the demand. Toys, for instance, arearticles of this kind, requiring little capital, moderate skill, andcommon raw materials. ]\Iost supply curves will have
. Papers : literary, sicentific, & r all materials. In some it will have thecharacter of curve 1 in Fig. 12—terminating almost abruptly /.AIVS OF SUPPLY AND DEMAND 91 at a given price, and shooting very rapidly upwards, so as to benearly vertical; this characterises the case of articles which, ata given price, can be produced in almost unlimited quantities,there being no material limit to their production in amountsimmensely superior to the demand. Toys, for instance, arearticles of this kind, requiring little capital, moderate skill, andcommon raw materials. ]\Iost supply curves will have the character of curve 2 inFig. 12. In these the cost of production will gradually increasewith the quantity produced, owing to the limitation of labour,of capital, and of raw material. The cost of production, as it must be understood in the thirdlaw of demand and supply, is obviously no one fixed cost constantfor all quantities, and the supply curve determined by the costof production may vary just as much as the supply curve in a. .,t Mippli) ettrv«. « <pf«ntttlca. 13.—Article dearer to produce in small quantities than in large. Articles produced at the rate of less than li millions per annum, cost so much to pro-duce that the quantities indicated by first curve only are produced at each 750,000, price 586-. If made in wholesale quantities exceeding 5 millions, the cost of production is shownby second curve. Seven millions may then be sold at 30a-. The demand curve might have fallen below 5 millions at 27*-., when the price will bedetermined by the first supply curve only ; or, while above 5 millions at 27*., thedemmd curve might fall short of the price of 55*., when the lower price would bealone possible. given market at a given time. The cost of production does notmean the cost at which an article can be produced if unlimitednumbers of labourers could be found who would be content withgiven wages, and if capitalists would apply unlim
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Keywords: ., bookcentury1800, bookdecade1880, bookpublisherlondo, bookyear1887
