tions in the quantity of it, or by variations in the demand for it; it follows, that fimilar effects must enfue, whether the variation is produced by an alteration in the quantity of the commodity, or by an alteration in the demand for it; provided always, that in confequence of fuch alterations, the fame proportion is established betwixt the demand for, and the quantity of the commodity.

For example: let us fuppofe any two focieties poffeffed of the fame quantities of all forts of commodities, and each enjoying a fupply of a thousand pound weight of fugar, for which there exifted a steady and fettled demand; if, in the one country, the fupply of the market fhould be diminished to five hundred pound weight, it is obvious, that the demand would be double the quantity for which there existed a supply; and if, in the other country, the fupply continuing at one thousand pounds weight, there should fuddenly arise

a

a demand for two thousand pounds weight,

it is equally obvious, that, in this cafe, the demand would be double the quantity for which there exifted a fupply. The new proportion, therefore, established betwixt the demand and the quantity, would, in either cafe, be exactly the fame; and of course, the value of any given quantity of fugar muft, in either cafe, undergo exactly the fame alteration.

If, therefore, we could fuppofe that there was any accuracy in conjecturing, that the diminution of the supply of fugar from one thousand to five hundred pound weight, would raise the value of fugar from one fhilling to eight fhillings a pound, it follows, that fugar, if the demand was by any means doubled, would alfo rife to eight fhillings a pound; the whole thoufand pound weight would then be worth L. 400; and of courfe L. 350 worth of goods, antecedently allotted for the purchase of other commodities, must be added, in confequence of the increafed demand, to the

L. 50

L. 50 worth, previously applicable to the acquifition of the one thousand pounds weight of fugar, when the fugar was at one fhilling a pound.

In ftating the effects of the diminution of one-half of the fupply of fugar, it was obferved, that the augmentation of the price might induce fome of the consumers of fugar, who preferred the full enjoyment of other things, to which they were habituated, to renounce in whole or in part the ufe of fugar; and that the rife in its value, by the reduction in its quantity, might, in some degree, receive a check from this circumftance. In like manner, when the value of fugar rifes in any great degree by a fudden extenfion of demand, fuch as we have here fuppofed, it is obvious, that a fimilar check to the rife of its value, will, to a certain extent, be given, by fome of those who were habituated to enjoy fugar at one shilling a pound not choofing to facrifice to the acquifition of fugar so much of

the

the other commodities they were accuftomed to enjoy, as becomes necessary to obtain fugar in confequence of the rife in its value.

The degree, however, in which this check will operate, as in the former cafe, muft depend upon the nature of the commodity for which the extension of demand takes place. It is obvious, that no rise in value can induce men to renounce the acquifition of the neceffaries of life, provided any facrifices they can make will procure them; and this check will therefore operate, just in proportion to the degree of inclination which either neceffity, habit or tafte, had created for the commodity; that is, it will be more inconfiderable, in proportion as the inclination to obtain the ufual quantity of it is lefs urgent.

4. Of

4. Of the Effects of Diminution of Demand for any Commodity, on the Value of that Commodity.

FROM what has been faid on the three cafes of the variation in the value of commodities, which have been already confidered, it must be at firft fight clear, that as this fourth, and only remaining circumftance, which can cause variation of value in any commodity, again fuppofes an alteration in the proportion betwixt the demand for, and the quantity of, the commodity in which it takes place; it must also produce effects fimilar to those that have already been defcribed.

If, for example, we fuppofe a fociety, whose usual supply of fugar amounted to one thousand pound weight, for which 'there exifted a fettled and fteady demand; fhould an alteration in the ftate of this fo