in the theory of value and prices. 45 



the character of the cisterns. If all the A cisterns are alike and 

 also all B cisterns, all C cisterns, etc, then each commodity will be 

 distributed in equal parts among the individuals. 



2. Press stopper I. This amounts to increasing the income of I 

 It does not increase the amount of commodities in the market but 

 gives a larger share to I. The total money value of the same aggre- 

 gate commodities in the whole market has increased by the amount 

 of liquid added by depressing the stopper. 



The added water in the back cisterns of the I row will make the 

 back compartments in this row fuller than the front. The back level 

 will be temporarily above the water level of the tank and (as the 

 cisterns will sink) the front level will be temporarily below. The 

 effect of the former is to bulge out the movable rear wall in the I 

 row, to extend the rods and to cause the same expansion in the back 

 compartments of the II, III, etc. rows. This makes the back liquids 

 in these rows lower and the front liquids higher than the tank level. 

 Hence the front cisterns of the II, III, etc. rows pour part of their 

 contents into the I row whose level as we have seen is below that of 

 the tank. 



In economic language to give a greater money value to one indi- 

 vidual causes for him smaller marginal utilities (cisterns sink), a 

 lower marginal utility of money, and increased consumption of com- 

 modities. For other individuals it increases marginal utilities (cis- 

 terns rise), decreases consumption, increases prices (back cisterns 

 expand), and may increase or decrease their marginal utility of 

 money-income according as marginal utilities (ordinates) increase 

 faster than prices (back thicknesses) or the reverse. 



So much for the effect on different individuals. Now as to the 

 effect on the various commodities. Prices in general have risen but 

 not necessarily of all articles. Suppose article C is consumed little 

 or not at all (cistern narrow) by the enriched individual I but is ex- 

 tensively used by those whose valuation of money has increased. 

 Then since the valuation of money to II is equal to the quotient of 

 the ordinate of IIC divided by the thickness of the back cistern of 

 lie, and since this ordinate has not lengthened by any appreciable 

 loss of commodity C from II to I, the thickness must have. lessened, 

 that is, the price has been reduced. 



Not only may there be such exceptional commodities but there 

 may be exceptional individuals. Thus a man may be the principal 

 consumer of just those commodities and those only whose price has 

 fallen. His consumption will increase, his marginal utility of money 



