In the late 1800s, Bernard made buggy whips. Their quality was such that people came from hundreds of miles to buy the whips. As mechanized transportation developed, horse-drawn buggies largely disappeared and so did the demand for Bernard's whips. Would Bernard have been better off if these new modes of transportation had never been invented?
While Bernard's case is a bit difficult, we can clearly say that society is better off with automobile, truck, and air travel. Bernard saw his unique skill made obsolete, and he most likely went out of business, but what other job opportunities for those with more general talents like his were created by the new modes of transportation? Did Bernard get one of these jobs and with greater earnings? Also, like everyone else, Bernard benefited from the reduced transportation costs and wider availability of goods that the technology brought.
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A) demand for capital. B) demand for consumer goods. C) demand for money. D) money supply.
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a. True b. False Indicate whether the statement is true or false
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