According to David Ricardo, what happens to a commodity if the demand for it is non-existent?

Study for the Economics for Hawaii Teachers Test. Enhance your understanding with detailed questions and explanations. Prepare effectively and succeed in your exam!

David Ricardo's economic theories emphasize the relationship between supply, demand, and value. When demand for a commodity is non-existent, it means that no one is willing to buy it, regardless of the quantity available. In such a case, the market price of that commodity inevitably falls to zero. This outcome reflects the basic principles of supply and demand: if there are no purchasers, the commodity cannot hold any market value, leading to a price of zero.

Additionally, this concept aligns with the idea that value is often derived from scarcity and demand. If there is no interest in obtaining a commodity, the inherent value attributed to its exchange vanishes, establishing a market price that cannot be sustained above zero. This principle effectively illustrates how market dynamics operate when demand evaporates entirely.

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