A Theory of Prices

HEN we wish mathematically to study a phenomenon, we need not start at first with the most general forms of this phenomenon. Let us idealize, first of all, the object of our inquiry in its simplest form, and later let us study the influence of the other parameters. Let us assume a wholly isolated and completely self-contained society consisting at first of only producers and consumers. We will examine later the parts played by political administration, capital, and exchange. Let us also assume that only consumption goods are produced. Let