Exchange Value is the capacity of a good to obtain in exchange a quantity of other goods. Price is that other quantity of goods. But the laws of these two coincide. So far as the law of price explains that a good actually obtains such and such a price, and why it obtains it, it affords at the same time the explanation that the good is _capable_, and why it is capable, of obtaining a definite price. The law of Price, in fact, contains the law of Exchange Value.[59] But (as will be elaborated more fully in chapter VI), Boehm-Bawerk's law of price does not explain the _why_ any more than do those of Jevons and Pareto, and the assumption that an "objective value in exchange" exists, in addition to the ratio of exchange and the subjective values, might just as logically be added to their systems as to his, with the assumption that the problem of its nature and causes had been cleared up. The Austrian analysis, even with Professor Clark's correction, is simply an explanation of the _modus operandi_ of the determination of _particular_ ratios in the market. It tells us nothing of quantitative values, and, in fact, assumes a whole system of values already predetermined, before the question of any particular price can be approached.[60] FOOTNOTES: [49] _Theory of Political Economy_, 3d edition, p. 14. [50] _Op. cit._, pp. 76-84. [51] _Ibid._, p. 83. [52] _Op. cit._, p. 81. [53] _Cours d'Economie Politique_, vol. I, pp. 1-40. The numerals in the text refer to pages in this volume. [54] _Value and Distribution_, p. 444. [55] Professor Davenport's attitude on this point we shall discuss more fully in chapter VIII. [56] _Ibid._, pp. 184, n., and 330-31.