Figure 1.11: Malthusian Equilibrium Before and After a Technological Improvement
Figure 1.11 illustrates the effect of a technological improvement within the Malthusian model, starting from an initial equilibrium. The diagram's horizontal axis represents the number of farmers (ranging from 0 to 2,800), and the vertical axis shows their average product in kilograms of grain (ranging from 0 to 1,000). The initial state is shown at equilibrium point E, with coordinates (1,500, 500), where the downward-sloping, convex average product curve intersects the horizontal subsistence income line. The technological improvement is represented by an upward shift of this average product curve.
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The Economy 2.0 Microeconomics @ CORE Econ
Ch.1 Prosperity, inequality, and planetary limits - The Economy 2.0 Microeconomics @ CORE Econ
Introduction to Microeconomics Course
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Figure 1.11: Malthusian Equilibrium Before and After a Technological Improvement
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