‘Price is not the same thing as value. Suppose that on a day the price of everything, viz., coal, bread, postage stamps, a day’s labour, the rent of houses, etc. were to double. Prices then would certainly rise, but values of all things except one would not.’
The writer wants to say that if prices of all things were doubled

Correct Option

The passage states that if the price of everything doubles, "prices then would certainly rise, but values of all things except one would not." This implies that the intrinsic or relative value of goods and services to each other remains constant. The exception is the medium of exchange itself. If all prices double, it means that a unit of currency can now purchase only half the quantity of goods and services it could previously. Consequently, the purchasing power, or value, of money is halved.

Incorrect Options

• Option 1: the values of all things would remain constant. This is incorrect because the passage explicitly states "values of all things except one would not." The "one" refers to money, whose value would change. While the relative values of goods to each other would remain constant, the value of money itself would decrease.
• Option 2: the value of the things sold would be doubled. This is incorrect. If prices double, the monetary price of goods doubles, but their intrinsic value or their value in relation to other goods does not. The passage clearly states that the "values of all things except one would not" rise.
• Option 3: the values of the things bought would be halved. This is incorrect. Similar to option 2, the intrinsic or relative value of goods does not halve. It is the purchasing power of the money used to buy them that is reduced.