Basicmeaning
Thevalueofcommoditiesismeasuredincurrency,andcurrencyisthemeasureofvalue.Thevalueofcommoditiescanonlyberealizedaftercommodityexchange(commodityandcurrencyexchange).Withoutexchange,thereisnoquantityofvalueofacommodity.
Thedeterminationofthequantityofcommodityvalue
Thedeterminationofthequantityofcommodityvalueisdeterminedbythenecessarylabortimeofthesociety.Theamountofunitcommodityvalueisdirectlyproportionaltothenecessarylabortimeinsociety(providedthattheequivalentamountoflaborvalueisequal).Westerneconomicsregardsunitcommodityvaluequantityandcommoditypriceasthesamething,andthinksthatcommodityprice(unitcommodityvaluequantity)isdeterminedbydemandandsupply.
MarxisteconomicsandWesterneconomicsbothbelievethatthesupplyofgoodsexceedsdemandandpricesrise;thesupplyofgoodsexceedsdemandandpricesfall.
Thisstatementisinaccurate,becauseatacertaintransactionprice,thesupplyanddemandareequal.Atacertaintransactionprice,thereisnoshortageoroversupply.
Thecorrectstatementshouldbe:Underthepremiseoftheconstantdemandcurve,thesupplyofgoodswilldecrease(notinshortsupply)andpriceswillrise;thesupplyofgoodswillincrease(notoversupply)andpriceswillfall.
Underthepremisethatthedemandcurveremainsunchanged,itisthechangeinthesupplythatleadstothechangeintheprice.Butateverytransactionprice,theremustbeasupplyequaltothedemand,andsupplyanddemandareequal.Thisisafact.