VIII. PRINCIPLES OF VALUE AND PRICE AS RELATED 

 TO FARM PRODUCTS 



QUESTIONS 



i. Distinguish between price, exchange- value, and utility. 



2. Which one of these coincides with the "actual value" or "fair 

 price" to which people so frequently refer? 



3. Is value a quality which is absolute or relative ? Does it reside 

 inside an article or is it extrinsic to it ? 



4. So long as an article remains unchanged, is its value unchanged ? 

 In your answer do you consider that an article is unchanged only so 

 long as its form or appearance is the same ? Would its value be 

 affected by a mere change in location ? a change in time ? 



5. Does the market value of barley and rye in the United States 

 depend upon the character of these grains or upon the nationality of 

 our people or upon both ? 



6. Do you think that the market prices of any of our agricultural 

 products would be revised if all private incomes above $5,000 were 

 suddenly swept away ? if every family were assured an income of at 

 least $3,000? What is the meaning of "effectual demand" ? 



7. We often say that prices are low because the supply exceeds 

 the demand. Is this expression accurate and complete ? If supply 

 is in excess of all demand, what will be the price of the article ? 



8. Show how youf own demand for fresh fruit is affected by the 

 principle of diminishing utility. What is marginal utility? 



9. What is a marginal consumer? Explain the nature of his 

 influence upon prices. 



10. In the case of crops which come upon the market in large bulk 

 during a short harvesting season, does the idea of marginal utility 

 of a last unit hold good ? Which bushels of wheat mark the margin 

 of wheat consumption ? 



11. What idea of marginal utility governs the thrifty housekeeper 

 when she is purchasing a winter supply ofapples in the fall ? Does 

 the quantity stored depend upon what suppliers areasking for their 

 stocks ? 



12. Explain what is meant by a demand schedule. Draw up a 

 schedule of the demand for cranb erries in accordance ii hnthe data 

 in selection 146. 



13. Make a demand schedule for potatoes accord wg tot the best 

 information you can get. Make another for grapefruit. How do 

 they differ ? Why ? 



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