ABSTRACT
In Chapter 10 of Volume 3 of Capital, Marx provides a method of determining the value of a commodity under conditions of excess or deficient demand. According to this interpretation demand directly affects the magnitude of a commodity's value. It does so by affecting the magnitude of labor-time considered to be "socially necessary". In Chapter 10 of Volume 3 of Capital, Marx develops three examples to illustrate how demand contributes to the determination of market value—the exchange-value of a commodity considered at industry level with competing producers all operating with varying compositions and productivities to produce identical products. According to monetary theorists, demand directly determines the magnitude of a commodity's value, but this conclusion is justified in two different ways. The Rubin School takes issue with two elements of the traditional attempt to theorize the relationship between value and price. Marx's theory of value, according to the Rubin School, cannot provide the basis for a quantitative theory of price determination.
