Principles of Political Economy, Vol. 1Roscher, Wilhelm
History
Principles of Political Economy, Vol. 1
Roscher, Wilhelm
Economics
Section C.
Prices In General.
The price of a commodity is its value in exchange expressed in the quantum
of some other definite commodity, against which it is exchanged or to be
exchanged. Hence, it is possible for any commodity to have as many
different prices as there are other kinds of commodities with which it may
be compared.(597) But whenever price is spoken of, we think only of a
comparison of the commodity whose value is to be estimated, with the
commodity which, at that time and place, is most current and has the
greatest capacity for circulation. (Money.)(598) When two commodities have
changed their price-relation to each other, it is not possible, from the
simple fact of such change of relation, to determine on which side the
change has taken place. If we find that a commodity A stands to all other
commodities, C, D, E etc., in the same relation as to price as before,
while commodity B, compared with the same, has changed its place in the
scale of prices, we may infer that B, and not A, has left its former
position.(599)
The words costly and dear, as contradistinguished from common and cheap,
both indicate a high price. We, however, call a commodity costly whose
price, compared with that of other similar commodities, is high. On the
other hand, we call a commodity dear when we compare it with itself, and
with its own average price in other places and at other times.(600)
In individual cases, the price of a commodity is determined most usually,
and at the same time most superficially, by custom; people ask and pay for
a commodity what others have asked and paid for it. If we go deeper and
inquire what originated this customary price and may continually change
it, we come to the struggle of interests between buyers and sellers. And
if science would analyze the ultimate elements of the incentives to this
struggle and the forces engaged in it, it is necessary that it should keep
in view the entire economy of the nation, and even all national life.
Section CI.
Effect Of The Struggle Of Opposing Interests On Price.
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