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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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