Recess studies . han the theoretical price, somany sellers are found that the other buyers reduce their offers. The same effect is produced whether the buyers bid orsellers proffer first. The excess or defect of the supply overthe demand at a price is inferred from the briskness of thesales, and is independent of the particular form in whichtransactions may take place. Thus the market price, as determined by the first law ofsupply and demand, is ascertained by competition. The law thus stated assumes that each man knows hisown mind, that is to say, how much of his commodity he will 154 GRAPHIC
Recess studies . han the theoretical price, somany sellers are found that the other buyers reduce their offers. The same effect is produced whether the buyers bid orsellers proffer first. The excess or defect of the supply overthe demand at a price is inferred from the briskness of thesales, and is independent of the particular form in whichtransactions may take place. Thus the market price, as determined by the first law ofsupply and demand, is ascertained by competition. The law thus stated assumes that each man knows hisown mind, that is to say, how much of his commodity he will 154 GRAPHIC REPRESENTATION OF then and there sell or buy at each price, and that the condi-tion of his mind shall not vary. If this be granted, then the market price will not be changedby the sales. The base line, as each quarter of wheat is sold,will then in our figure gradually ascend, until, when 800quarters have been sold, it will have reached the positionshown in Fig. 2, when no further sales will take place, but &p-ll?!?I«_€l(M2^tl*.^iytlUV^ilI:^2^«lt5_l!if/f^^
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Keywords: ., bookcentury1800, bookdecade1870, bookpublisheredinb, bookyear1870
