| This question <545|210> overall <87|89> Ann: <87|94>. |
| Question 62: Discuss the implications of the fact that an increase in material wealth in the form of commodities may be accompanied by a decrease in the total amount of their value. How does this contradiction manifest itself in developed capitalism? |
| [88] Ann: An increase in material wealth would cause a decrease in value when using the example of an economic term, the “snob effect.” Let's say the consumption of BMW cars went up. In the market economy on average the demand for BMW cars will go down because the more of one good that is consumed, it will be less desirable to purchase. |
| Hans: This is an interesting theme which I have encountered in the past when teaching this class. People say that one of the desirable things about consumption is that not everybody else has it too. |
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