| 520 |
|
The relationship between endowments, such as population, and relative prices has been analyzed in classical Works of economic history, since Adam Smith. From the point of view of economic theory relative prices are directly related t6o factors and the intensity of their use in production of various goods. Therefore, changes in the relative prices of different types of goods are caused by fluctuations in population. In the classical studies on this subject by Phelps Brown and Hopkins, prices and wages in England and Europe since the 13 are analysed. They show how the fall in population provoked by the Black Death resulted in a progressive rise in the labour cost, in terms of agricultural goods.^ien |
