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In the absence of a prevailing theory (in this case, supply-and-demand), people tend to go with their biases (in this case, the notion that every input that goe
by chordalkeyboard 6y ago
In the absence of a prevailing theory (in this case, supply-and-demand), people tend to go with their biases (in this case, the notion that every input that goes towards producing a product is comparably in value to the finished product). Here the example is the increase in the value of labor because some other more productive use can be found for the labor. Other times its the apparent discrepancy between a low-income worker contributing to the production of a high-value item.