Principles of Microeconomics / Unit 3 MIC 0205 short lesson, about 20 seconds
Technology: Substitute or Complement
Captions available
The idea
A new technology can substitute for a kind of labor, shifting its demand left, or complement it, shifting demand right. The same invention often does both to different workers.
In practice
Word processing replaced typists and raised demand for the people who maintain networks.
Where people slip
Ask which tasks the machine does. Routine tasks are substituted; tasks that use the machine are complemented.
Your place on the trail
Every lesson rests on earlier ones and opens later ones. Tap any to jump.
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