nsumption and still more by
improvements occurring elsewhere. Labor that is thrown out of the _A_
group would naturally go to group _B_, _C_, etc.; but if, as we have
just seen, similar influences tend to expel labor from the _B_ group
and the _C_ group, the labor may, for the most part, stay where it is,
with the result that more of _A'''_, _B'''_, and _C'''_ is offered to
consumers. _The increased output of one group is itself a means of
retaining labor in other groups_, even though, thanks to mere methods,
that involves making more of every other kind of commodity.

_The Supply of One Kind of Goods Equivalent to a Demand for
Others._--There should be no difficulty in interpreting, in this
connection, the traditional statement that "the supply of one kind of
goods constitutes a demand for another." An increment of _A'''_ and
one of _B'''_ coming into existence together supply wants common to
their two sets of producers and both groups can gain by exchanging
such portions of their respective products as they do not retain for
their own use. If _A'''_ and _B'''_ were the only consumers' goods
used, a part of the excess of each would be distributed among the
members of the group producing it, and the remainder would be given in
exchange for some of the other kind of goods, also for distribution
among the members of the first-named group. This is what actually
happens when a multitude of articles for consumption are produced in
increasing quantities.

_Effect of an Increase of Individual Incomes on the Character of Goods
Consumed._--Such an increase of the productive power of a group means,
of course, an increase of individual incomes, and it causes men, as we
have seen, to consume better things rather than more of them. There is
a certain merely quantitative enlargement of every one's consumption
of goods of a given kind, every one using more of _A'''_ than he used
before; but the greatest change shows itself in the quality of what he
uses. Every man buys and consumes better articles of the _A'''_ kind,
as well as of other kinds. His food, his clothing, etc., are all
prepared in a more elaborate way, and he has more of what we call form
utility which results from the fashioning of things, and relatively
less of the elementary utility which inheres in the raw material.
There is somewhat more of raw material and very much more form utility
in the goods he demands for personal consumption. This requires that
labor should