Skip to main content Accessibility help
×
Hostname: page-component-78c5997874-t5tsf Total loading time: 0 Render date: 2024-11-20T03:38:18.101Z Has data issue: false hasContentIssue false

CONVERSATION XV - ON VALUE AND PRICE

Published online by Cambridge University Press:  07 September 2011

Get access

Summary

MRS. B

BEFORE we proceed to the subject of trade, it is necessary that you should understand what is meant by the value of commodities.

CAROLINE

That cannot be very difficult; it is one of the first things we learn.

MRS. B

What is learnt at an age when the understanding is not yet well developed, is not always well learnt. What do you understand by the value of commodities?

CAROLINE

We call things valuable which cost a great deal of money; a diamond necklace, for instance, is very valuable.

MRS. R.

But if, instead of money, you gave in exchange for the necklace silk or cotton goods, tea, sugar, or any other commodity, would you not still call the necklace valuable?

CAROLINE

Certainly I should; for, supposing the necklace to be worth 1000l., it is immaterial whether I give 1000l. in money, or 1000l. worth of any thing else in exchange for it.

MRS. B

The value of a commodity is therefore estimated by the quantity of other things generally for which it will exchange, and hence it is frequently called exchangeable value.

CAROLINE

Or, in other words, the price of a commodity.

MRS, B.

No; price does not admit of so extensive a signification. The price of a commodity is its exchangeable value, estimated in money only. It is necessary that you should remember this distinction.

Type
Chapter
Information
Conversations on Political Economy
In Which the Elements of that Science are Familiarly Explained
, pp. 269 - 292
Publisher: Cambridge University Press
Print publication year: 2010
First published in: 1816

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

Save book to Kindle

To save this book to your Kindle, first ensure coreplatform@cambridge.org is added to your Approved Personal Document E-mail List under your Personal Document Settings on the Manage Your Content and Devices page of your Amazon account. Then enter the ‘name’ part of your Kindle email address below. Find out more about saving to your Kindle.

Note you can select to save to either the @free.kindle.com or @kindle.com variations. ‘@free.kindle.com’ emails are free but can only be saved to your device when it is connected to wi-fi. ‘@kindle.com’ emails can be delivered even when you are not connected to wi-fi, but note that service fees apply.

Find out more about the Kindle Personal Document Service.

Available formats
×

Save book to Dropbox

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Dropbox.

Available formats
×

Save book to Google Drive

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Google Drive.

Available formats
×