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

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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?
c. Sen emphasizes that “lack of buying power” is more important during a famine than “lack of food.” How does the Sen’s barber story illustrate this?
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Modern Principles of Economics

ISBN: 978-1429278393

3rd edition

Authors: Tyler Cowen, Alex Tabarrok

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