It depends on the demand "function." We only need so many socks. If sockmakers get more efficient, there'll be fewer sockmakers and prices will come down shrink

It depends on the demand "function." We only need so many socks. If sockmakers get more efficient, there'll be fewer sockmakers and prices will come down shrinking the industry. In some cases, if productivity increases, and the price performance follows, we will consume far more of a thing, growing the market and employing more people.