180 Professor Whewell on the 



P =1+ fryQw + l) 

 P i +5 + ^+1)7 



t 



= 1 + 



1 + f 

 1 + 



7 (m + 1) 

 Hence it appears that the increase of price on these suppositions 



will be greater according as 1 + -j is less. 



Therefore («? being > 1) the rise of price from the tax will be 

 greater in commodities, as m is greater, and as d is less; that is, 

 as the proportion of fixed capital is greater, and as its dura- 

 bility is less, (Ricardo, p. 273). 



If we suppose two cases, in one of which /« = 4, in the other 

 m = i (Ricardo, p. 273.), and if we neglect ~ t , we have, 7 being 



1 

 ~ 5' 



in the first case — = 1 + ~ , 



P * 



in the second *- = 1 + - . 

 P 5 



The rise of price is 2i times as great in one case as in the 



other. 



A tax on all profits is an income tax, and the effect of such 

 a tax will thus be unequal on the prices of different commo- 

 dities. 



