Principles of Economics, 7th Edition

Published by South-Western College
ISBN 10: 128516587X
ISBN 13: 978-1-28516-587-5

Chapter 19 - Part VI - Earnings and Discrimination - Problems and Applications - Page 411: 6

Answer

Income for the best musicians increased, and the income for average musicians decreased.

Work Step by Step

With the introduction of recording devices, this could be deemed an increase in technology for the best musicians. In turn, the demand for more music from the best musicians increased, and the income for the best musicians increased. Additionally, as recording devices were more available, more people thought about being musicians. Since there are more musicians, the average income per musician decreased.
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