2. The technology for cutting hair has changed little in the last 100 years, whereas the technol- ogy for growing wheat has improved dramati- cally. What do you think has happened to the relative prices of haircuts and wheat? What do you think has happened to the relative in- comes of barbers and farmers? Explain how this is possible.

2. The technology for cutting hair has changed little in the last 100 years, whereas the technol- ogy for growing wheat has improved dramati- cally. What do you think has happened to the relative prices of haircuts and wheat? What do you think has happened to the relative in- comes of barbers and farmers? Explain how this is possible.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter3: Demand And Supply

Section: Chapter Questions

Problem 41CTQ: We know that a change in the price of a product causes a movement along the demand curve. Suppose...

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