fourteen dollars for comeliness, he will give more than six
for warmth. Probably he would pay one hundred dollars for the article
if he had to, and in getting it for twenty he gets a large consumers'
surplus. This is because he secures the first utility (1) for less
than it is worth to him, (2) for just what it costs in the making, and
(3) for just what it is worth to the poorer purchasers. He is willing
to pay only fourteen dollars for the comeliness, which is the second
utility that the garment contains, and he is therefore a marginal
purchaser of this second utility. It costs only the sum of fourteen
dollars to add the second utility to the first, and enough coats of
the second grade are made to catch the patronage of the class of
buyers who will give so much and no more for it. They are the persons
whose demand figures in adjusting the market price of this second
utility. Competing producers of coats cause the supply of those of the
second grade to be so large that they could not all be sold unless the
second utility were offered for fourteen dollars. This makes the price
of the entire coat twenty dollars as the result of catering in a
detailed way to the demand of two different classes of buyers.

In exactly the same way the price of the third grade is fixed at forty
dollars and that of the still higher grade at seventy-five. In the
third grade there is a utility which it costs twenty dollars to add to
those possessed by garments of the second grade, and this is added to
enough of them to supply all persons who will pay twenty dollars or
more for it. These coats are made of more highly finished goods and
have better linings, and this gives them the third utility which the
market appraises at its cost, which is twenty dollars. The men who buy
the forty dollar coats get a surplus of benefit in securing the first
two of the utilities that are embodied in them, since for these they
pay less than they would pay if they had to; but they get no surplus
over the cost of the third utility. It is to secure their custom that
the vender must sell it for twenty dollars. In a like manner a coat of
the next grade, which is a more fashionable garment, sells for
seventy-five dollars because it has a fourth utility which costs
another sum of thirty-five dollars and, to the marginal buyers, is
worth that amount. These men get a surplus from buying the first three
utilities at what they cost their producers and what they are worth to