Explain relative strengths of substitution and output effect


Florida citrus growers say that the recent crackdown on illegal immigration is increasing the market wage rates necessary to get their oranges picked. Some are turning to $100,000 to $300,000 mechanical harvesting machines known as trunk, shake and catch pickers, which vigorously shake oranges from the trees. If adopted, how will this substitution affect the demand for human orange pickers? What does that imply about the relative strengths of the substitution and output effects?

Request for Solution File

Ask an Expert for Answer!!
Microeconomics: Explain relative strengths of substitution and output effect
Reference No:- TGS066880

Expected delivery within 24 Hours