publisher. Not indexed. Not illustrated. 1922 edition. Excerpt: ...usual meaning of the word, is really a device by which costs of distribution are reduced, then would it not make the situation clearer if it were said that the consumer would pay for failure to advertise, rather than that he pays for the advertising? But if the consumer of a decreasing-cost article pays more money for it simply because the producer failed to advertise it adequately, how can it be said, when this article is advertised, that the consumer pays for its advertising, when he actually secures the article for a less price--due to advertising? The only way out of this dilemma is to recognize that all distribution costs, including advertising, are included in prices of decreasing-cost goods; but if it were not for the advertising expenditure the consumer would pay more for commodities of this nature. In other words, consumers of decreasing-cost goods "pay" ror a improvements in technique of their production and distribution, but they would pay more if such improvements were not made. CHAPTER XIII THE INCIDENCE OF ADVERTISING COSTS (cont1nued) 4. D1str1but1on Of F1xed Supply Definition of Fixed Supply Goods.--The fourth condition of distribution to be considered in a discussion of the incidence of advertising costs is that where the supply of goods is fixed. Fixed-supply goods present a very interesting classification. They may be defined as goods that are fixed in amount relative to demand. An instance of this may be found in the case of houses in a town that is growing so rapidly that houses cannot be built fast enough to take care of all newcomers, or in a town declining so rapidly that the houses cannot be taken off the market as fast as people move away. Examples of goods absolutely fixed in supply are: rare paintings, old...

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