economist William Nordhaus documented how technology has reduced the price of light by over a thousand-fold since the days of candles and whale oil lamps, allowing us to expend far less on labor while getting all the light we need.20 Whole sectors of the economy, not just product categories, can face relatively inelastic demand. Over the years agriculture and manufacturing have each experienced falling employment as they became more efficient. The lower prices and improved quality of their outputs did not lead to enough increased demand to offset improvements in productivity.
