ABSTRACT
The word value is burdened with a variety of meanings. It is used in the household and market-place, in senses technical and non-technical, in works on natural science and social science and in the writings of popular fiction. Every purchase implies a decision to buy on the part of the purchaser. This decision may be the result of a whim, fancy, or impulse; it may be ill considered or well considered, none the less it is a decision. The humblest peasant may desire a luxurious home with as much intensity as if he were a millionaire, but he could make no demand for it. The elasticity of market demand refers to the extent to which the number of purchases varies with movements in price. The market demands of the wealthy are more inelastic than are those of the poor. Production is constantly growing more varied, and this signifies a greater variety of goods or means of substitution.
