ABSTRACT
§1.Inventions bring about changes in producers’ demand for the various factors of production. But we must also take account of changes in consumers’ demand for consumable goods and services, and consider how far such changes are likely to affect the absolute and-relative shares of the various factors. Three causes of changes in consumers’ demand may be usefully distinguished ; first, changes in the tastes and habits of consumers, unaccompanied by changes in the relative incomes of individuals and classes or in the total production per head of the community ; second, changes in the relative incomes of individuals and classes, unaccompanied by changes in the total production per head ; third, changes in the total production per head.
