in the theory of value and prices. 



35 



6. 



An analogous discussion applies to fig. T. In place of a given in- 

 come we must suppose a given amount of expenses to be met by the 



production of various commodities.* It is at this point that an im- 

 portant distinction between production and consumption enters, viz: 

 in civilized life men find it advantageous to consume many things 

 but to produce feid. The discussion of this difference pertains to 

 Part II. 



CHAPTER IV. 

 M COMMODITIES— N CONSUMERS (OR PRODUCERS). 



We have seen the laws of distribution of commodities from two 

 points of view, by first restricting our discussion to one commodity 

 among many consumers and afterward to one consumer among many 

 commodities. Our discussion is like a tourist's view of a great city, 

 who glances up each east and west street while riding along the same 

 avenue and then takes a " cross town " course and sees each avenue 

 from a single street. We are now to seek a bird's-eye view. 



The variables and their variations which have been described are 

 comparatively simple. But the possible variations in the more gen 

 eral case are so complicated that they can scarcely be seen or de 

 scribed without the aid of a mechanism. 



* Borrowing capital is to be here regarded as a form of producing. The dis- 

 utility of borrowing the last dollar equals the disutility of producing the last 

 dollar's worth of goods. See foot note to i^ 2. 



