“However dissimilar they may be” – Ludwig von Mises
“The price is the first and most obvious indication of the nature of the alternatives” – Philip Wicksteed
“And all consumers’ goods are partial substitutes for one another; for every good is engaged in competing for the consumers’ stock of money.”
“Much has been written in the economic literature of consumption theory on the assumption that each consumers’ good is desired quite independently of other goods. Actually, as we have seen, the desires for various goods are of necessity interdependent, since all are ranged on the consumers’ value scales. Utilities of each of the goods are relative to one another. These ranked values for goods and money permit the formation of individual, and then aggregate, demand schedules in money for each particular good.”
Next:
- 13-9a0 “The price is the first and most obvious indication of the nature of the alternatives” – Philip Wicksteed
- 13-9a1 A value scale consists of goods with which the individual is familiar—the good will not be on the value scale if the individual does not know about that good
- 13-9b The more substitutes there are, the more elastic will tend to be the demand schedules for that good
Related:
- On money as bridge
- 13-1a3a2d3 Value scales are unified individually—they become more transparent, more measurable, and more comparable to the individual—with money, although never exhaustively
- 13-1a3a2e5 Time component in prices emerges with the introduction of money
- 13-1a3a2e2 The introduction of money creates the money market wherein everything can be exchanged for anything in the economy
- Everything is connected
- Economics and the multiverse