Suppose that new high-technology farming equipment is developed. These new machines are substitutes for low-income workers such as farm laborers, but they are complements for high- income workers such as farm technicians and farm owners. This new technology will shift the demand curve for low-income workers to the _______ while shifting the demand curve for high-
Income workers to the _______.

Question

Quizplus · Accepted Answer

The new technology, being a substitute for low-income workers, decreases the demand for them, shifting their demand curve to the left. For high-income workers, who are complemented by the technology, the demand increases, shifting their demand curve to the right.

Suppose That New High-Technology Farming Equipment Is Developed