Economics: Principles, Problems, and Policies, 19th Edition

Published by McGraw-Hill Education
ISBN 10: 0073511447
ISBN 13: 978-0-07351-144-3

Chapter 12 - The Demand for Resources - Questions - Page 264: 7

Answer

An adoption of mechanical pickers increases output and therefore will cause decrease demand for human pickers. This causes the substitution effect to be greater than the output effect.

Work Step by Step

This question tests your understanding of how technological shaping can affect the output effect and substitution in production.
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