So in the case of each commodity there are different classes of consumers, some much more sensitive than others to changes in the value, some indifferent as to the price, who consume the customaiy quantity re gardless of what they have to pay for it, others who reduce their consumption or stop consuming alto gether as the result of a certain advance in price.
8. The marginal conszimer.—The consumer who is least anxious to buy and consume, whether because his want is the least intense or because his purchasing power is small, is called the marginal consumer. An advance of the price drives him out of the market; he gives up the article altogether and looks for a substi tute which will be cheaper. His place as marginal consumer has been taken by another, by one who is barely willing and able to pay the higher price. On the other hand, if the price is lowered another type of marginal consumer may come into the market, one whose desire for the good is less intense or whose means are less ample even than those of the first. Thus any change in the price of an article affects the quality and rank of the marginal consumer who buys it.
When we take into account the fact that society is virtually divided into many different classes ,of con sumers, different because of their tastes and incomes, we can see clearly why it is that a change in the market price • of a commodity brings about a change in the effective demand for it, why a rise in its price causes one class of consumers to hold off and so to reduce its consumption, and why a lowering of the price brings into the market a new class of consumers causing increased sales.
In any industry the marginal consumer class is of great importance. That class and the one just below it are the ones to which the appeals of the advertiser must be especially directed. In fact, from this point of view we might define the essential aim of advertis ing as being able to hold the marginal consumer and gradually to lower the margin of consumption, so that people who are now indifferent to an article because of its price or lack of desire for it shall be persuaded to buy it. To some people the telephone is almost a necessity. They will have it in their offices and in their homes almost regardless of the price. To others
it seems a luxury which they can hardly afford. Among these latter are found the marginal consumers and those who are almost persuaded. It is to these that the advertisements of the telephone company should be addressed.
9. Marginal concept in other marginal concept is a useful one outside of economics. In pol itics we might speak of the marginal Republican, meaning thereby the dissatisfied man who votes the Republican ticket with reluctance, not certain that he should not vote with the Democratic or some other party. The "spell binders" should aim their oratory at him and not be content merely with the expression of sentiments which bring applause from the ma jority.
The slowest ship in a battle fleet might be called the marginal ship ; it limits the speed of the whole fleet.
A teacher must pick out the marginal student in his class. Shall he lecture so clearly and simply that even the dullest student can understand? Or shall he take those that are 20 per cent higher in intellectual ability and be satisfied if he make his expositions and explana tions intelligible to them, letting those more dull flounder as they please? Every teacher unconsciously does this, altho some think they have in mind the capacity of the average student. But that cannot be true, for there is no such thing as an average student.
The preacher to be effective must make his strong est appeal to the wavering, uncertain ones almost ready to renounce their evil ways, as well as to those members of his church who are sliding backward.
10. Consumer's we have seen, the wants of men differ greatly and are subject to diminution as they are gratified. A man's valuation of money depends very much upon the amount in his possession. The more money he has, the higher the price he is willing to pay for the gratification of any desire. Of two men who want an article with equal intensity the one who has the more money is likely to be willing to pay the higher price.
We have also seen that the price or value of an article is somehow related to its marginal utility, tending to coincide with it. We have seen that the price of an article must be one satisfactory to the marginal consumer, the one who is willing to pay the least for it.