approximate, in proportion to the intelligence and knowledge of the dealers.”
Adam Smith, who introduced the expression “effectual demand,” employed it to denote the demand of those who are willing and able to give for the commodity what he calls its natural price—that is, the price which will enable it to be permanently produced and brought to market.210
This, then, is the Law of Value, with respect to all commodities not susceptible of being multiplied at pleasure.
§ 4. Miscellaneous Cases falling under this Law.
There are but few commodities which are naturally and necessarily limited in supply. But any commodity whatever may be artificially so. The monopolist can fix the value as high as he pleases, short of what the consumer either could not or would not pay; but he can only do so by limiting the supply. Monopoly value, therefore, does not depend on any peculiar principle, but is a mere variety of the ordinary case of demand and supply.
Again, though there are few commodities which are at all times and