\"Theconverseofallthiswouldhavehappened,if,insteadof800times17yards,wehadsupposedthatEngland,attherateof10for17,wouldhavetaken1200times17yardsoflinen。Inthiscase,itisEnglandwhosedemandisnotfullysupplied;itisEnglandwho,bybiddingformorelinen,willaltertherateofinterchangetoherowndisadvantage;and10yardsofclothwillfall,inbothcountries,belowthevalueof17yardsoflinen。Bythisfallofcloth,orwhatisthesamething,thisriseoflinen,thedemandofGermanyforclothwillincrease,andthedemandofEnglandforlinenwilldiminish,tilltherateofinterchangehassoadjusteditselfthattheclothandthelinenwillexactlypayforoneanother;andwhenoncethispointisattained,valueswillremainwithoutfurtheralteration。\"Itmayheconsidered,therefore,asestablished,thatwhentwocountriestradetogetherintwocommodities,theexchangevalueofthesecommoditiesrelativelytoeachotherwilladjustitselftotheinclinationsandcircumstancesoftheconsumersonbothsides,insuchmannerthatthequantitiesrequiredbyeachcountry,ofthearticleswhichitimportsfromitsneighbour,shallbeexactlysufficienttopayforoneanother。Astheinclinationsandcircumstancesofconsumerscannotbereducedtoanyrule,soneithercantheproportionsinwhichthetwocommoditieswillbeinterchanged。Weknowthatthelimitswithinwhichthevariationisconfined,aretheratiobetweentheircostsofproductionintheonecountry,andtheratiobetweentheircostsofproductionintheother。Tenyardsofclothcannotexchangeformorethan20yardsoflinen,norforlessthan15。
Buttheymayexchangeforanyintermediatenumber。Theratios,therefore,inwhichtheadvantageofthetrademaybedividedbetweenthetwonations,arevarious。Thecircumstancesonwhichtheproportionateshareofeachcountrymoreremotelydepends,admitonlyofaverygeneralindication。
\"Itisevenpossibletoconceiveanextremecase,inwhichthewholeoftheadvantageresultingfromtheinterchangewouldbereapedbyoneparty,theothercountrygainingnothingatall。
Thereisnoabsurdityinthehypothesisthat,ofsomegivencommodity,acertainquantityisallthatiswantedatanyprice;
andthat,whenthatquantityisobtained,nofallintheexchangevaluewouldinduceotherconsumerstocomeforward,orthosewhoarealreadysupplied,totakemore。LetussupposethatthisisthecaseinGermanywithcloth。BeforehertradewithEnglandcommenced,when10yardsofclothcostherasmuchlabouras20