>>2731435Marx attributes the market price of commodities being determined by supply and demand - yes or no?
Here is a primary source to help you along:
<the oscillations of market prices, rising now over, sinking now under the value or natural price, depend upon the fluctuations of supply and demand.https://www.marxists.org/archive/marx/works/1865/value-price-profit/ch02.htm>Critique of political economyWhat does this mean to you?
>>2731723>in real life the prices of different commodities change at different rates, no? Yes, which all relate back to the price of labour.
>I have seen food and fuel get more expensive while phones become less expensive.The new iPhone is more expensive than the last. But in any case, the depression of the price of goods should be due to rates of supply which exceed the supply of money. If monetary inflation occurs at 5% every year, yet the price of electronics recedes at 5% then the sum must be made that the supply of electronics is at 200% the rate of supply of money, which if the rate of inflation is 2% means that electronics would have to increase their supply at a rate of 4%. A reduction in the cost of production would also be concurrent with increased supply. Other factors which might inflate food prices besides monetary depreciation is "velocity of money", which is the volume of spending within a particular market. For example, in wealthier areas, the same goods as in poor areas may be more expensive. Other factors like rent and transport costs are considered, but even in the same district, some goods sell for higher because more money is present.
Conservatives often invoke this point when they discuss minimum wage, since if the price of labour increases, then the prices of necessaries will increase, which is true, but its about rates. If the median wage increases at 5% per year yet general inflation is at 3% then goods are still more affordable at this margin. The alternative would be an "iron law" which arrested growth for
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