1.2. a. When a drought hits a country, and a famine is possible, what probably falls more:...

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1.2.

a. When a drought hits a country, and a famine is possible, what probably falls more: the demand for food or the demand for haircuts? Why?

b. Who probably suffers more from a deep drought: people who own farms or people who own barbershops? (Note: The answer is on page 164 of Sen's summary ofhis life's work, Development as Freedom.)

c. Sen emphasizes that "lack of buying power"

is more important during a famine than

"lack of food." How does Sen's barber story illustrate this?

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Modern Principles Microeconomics

ISBN: 9781429239998

2nd Edition

Authors: Tyler Cowen, Alex Tabarrok

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