Use the principle of substitution to predict the effect in each of the following situations. a. During the past 30 years, technological advances in the computer industry have led to dramatic...

a.
During the past 30 years, technological advances in the computer industry have led to dramatic reductions in the price of equipment. At the same time, real wages have increased slowly.

b.
The ratio of land costs to building costs is much higher in big cities than in small cities.

c.
Wages of textile workers and shoe machinery operators are higher in Canada than in the southern United States, but the price of capital equipment is approximately the same.

d.
In China’s cities, wage rates for labour are rising faster than the price of capital equipment.