chapter  43
5 Pages

PERSONAL (SUBJECTIVE) VALUE-IN-EXCHANGE

The formation of price relates all prices which exist in the market at any one time. In the widest sense of the term they may be referred to as related prices. The relationship is established through demand and supply. In the case of supply the prices of all products and all productive means, both material and personal, are harmonized by the unity of production. The individual productive processes are related through all orders by the connections through the productive stems. In the case of cost products the relationship is clearly expressed in the law of cost. According to the latter, the prices of products are established as combinations of their productive elements or vice versa. But also the prices of specific products and specific productive means are firmly knit together by the law of specific attribution as regards all other prices. From the side of the demand, the relationship is established by the fact that every household is itself a unit, and that all households enter into competition in the market and are subject to the law of the single price. In the estimates of every income group, the quantities and prices of different articles are appraised against each other. These estimates of the groups result in a stratification of prices which are mutually conditioning. Thus every new price is fitted into the framework of old prices both on the part of the supply and the demand.