The price of wheat raised on The price of cloth woven good land is the same as that on good looms is the same as of wheat raised on the marginal that of equally good cloth zone, and it affords a surplus woven on marginal ones, and above wages and interest paid it affords a net surplus above by farmers for labor and the cost of maintaining the capital used in the tilling stock of looms and the of the good land. wages and interest paid by manufacturers for further capital used in connection with the good looms. The existence of this surplus The existence of this surplus in its original form, that in its original form, that of wheat, affects the supply of cloth, affects the supply and the price of that product. and the price of this product. The fact that farmers pay The fact that _entrepreneurs_ landlords for this surplus pay capitalists for this has no effect on the price surplus has no effect on the of wheat. price of cloth. The more important facts concerning rent have reference to the original form of it, namely, a product in kind. Whatever constitutes a part of the supply of anything affects the price of it. The surplus afforded by good looms is an element in the supply of cloth, and that afforded by good land is an element in the supply of wheat. They make these two supplies larger than they would otherwise be, and of course they are of cardinal importance in determining price. The rent of anything is an element in the supply of some kind of goods, and the annihilation of it would reduce the supply and raise the price of product in which, in its first estate, it consists. CHAPTER XII ECONOMIC DYNAMICS