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The following is from Mun's _England's Treasure_ (Ch. 3, Sec. 3, c 
1627)(copied from the McMaster archive site).  The first two sentences 
indicate he was well aware of demand elasticity and what underlies it.  The 
fifth sentence seems to argue that the elasticity of foreign demand for 
British textiles is two.  (This seems to be a somewhat incidental point in 
his argument for predatory dumping.) 
 
"In our exportations we must not only regard our own 
superfluities, but also we must consider our neighbours 
necessities, that so upon the wares which they cannot want, nor 
yet be furnished thereof elsewhere, we may (besides the vent of 
the Materials) gain so much of the manufacture as we can, and 
also endeavour to sell them dear, so far forth as the high price 
cause not a less vent in the quantity. But the superfluity of our 
commodities which strangers use, and may also have the same from 
other Nations, or may abate their vent by the use of some such 
like wares from other places, and with little inconvenience; we 
must in this case strive to sell as cheap as possible we can, 
rather than to lose the utterance of such wares. For we have 
found of late years by good experience, that being able to sell 
our Cloth cheap in Turkey, we have greatly encreased the vent 
thereof, and the Venetians have lost as much in the utterance of 
theirs in those Countreys, because it is dearer. And on the other 
side a few years past, when by excessive price of Wools our Cloth 
was exceeding dear, we lost at the least half our clothing for 
forraign parts, which since is no otherwise (well neer) recovered 
again than by the great fallof price for Wools and Cloth. We find 
that twenty five in the hundred less in the price of these and 
some other Wares, to the loss of private mens revenues, may raise 
above fifty upon the hundred in the quantity vented to the 
benefit of the publique. For when Cloth is dear, other Nations 
doe presently practise clothing, and we know they want neither 
art nor materials to this performance. But when by cheapness we 
drive them from this employment, and so in time obtain our dear 
price again, then do they also use their former remedy. So that 
by these alterations we learn, that it is in vain to expect a 
greater revenue of our wares than their condition will afford, 
but rather it concerns us to apply our endeavours to the times 
with care and diligence to help our selves the best we may, by 
making our cloth and other manufactures without deceit, which 
will encrease their estimation and use." 
 
Dick Ballman 
Augustana College 
 
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