"Fred Weiss" papertig.com> wrote in message
news:3f26952a-b96f-4be4-82cd-995f6f9dba71@z72g2000hsb.googlegroups.com...
On Sep 10, 8:09 pm, "Tim" q.con> wrote:

So, what happened to "... the price of inputs, one of which will
always be labour" determining the supply curve?

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Simple, they went to waste. Let's say a supplier produces a product that you
depend on, say adult diapers. The supplier has to buy the raw materials that
are used to make the diaper, they have to pay for the labour that is
utilized in making the diaper, and they have to pay for the tools, machines,
factory, electricity.... that go into your diaper. Say something goes wrong,
your diaper is ruined, say it melts or tears or catches fire. Well it can't
be sold so it goes in the waste bin. ALL THE INPUT COSTS REMAIN, GET IT? The
supplier has to cover the input costs whether you purchase the diaper or
whether it goes in the garbage. If you buy it the supplier makes a profit -
that's the selling price minus the input costs, get it. If he has to toss it
all those input costs get spread over the products that makew it to market.
Fewer rejects = greater profit, get it?

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"The market value, if it's at equilibrium, is the price
where the supply and demand curves meet. The supply curve is, in
part,
determined by the price of inputs, one of which will always be labour.
" - sayeth Tiny Tim

In this instance "the price of inputs", neither labor or anything
else, has any effect on the "supply curve" and there is in addition no
demand. But you said that's what determines "the market value".

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No I said that the price of inputs is one determiner of the supply curve. I
said that in equilibrium where the S and D curves meet is the market value.
Learn to read!
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Maybe you have a textbook from one of your brilliant economists from
which you can quote to us to solve this little problem.

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Quoting aint gonna make you read any better. But maybe you could find an
economist who agrees with you. Until then the problem is yours. But FYI the
book i've cited half a dozen times to you states that quantity demanded is
influenced by: the commodities own price, average household income, the
price of related commodities, tastes, distribution of income among
households, and the size of the population. Quantity supplied by:
commodities own price, price of inputs, goals of firms, and state of
technology. But since you claim to be so much wiser why not tell us how you
are wiser. ie why should I reject this text book and accept your opinion?
And don't forget that all of those prices are an indication of scarcity. Get
it yet?
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Yes, it is simple, Tiny Tim. But it has absolutely nothing to do with
what you said.