his particular event is related to the topic technological revolution because there were huge dramatic changes in the social and economic viewpoint that were driven by technology and inventions. The article has explained briefly on the overall impacts of the industrial revolution to the world economy and supported the significant development of economic growth in various sectors like agriculture, industries, and transportation.
Critical Analysis
When the machines started to take over factories and became the most important assets of the businesses, the productions rose in large-scale. This resulted in cheaper prices because of greater supply. This is related to one of the economy concepts, Law of Demand, which states that the lower the price of the good, the greater the quantity demanded; the higher the price of a good, the lower the quantity demanded. Besides, if the price decreases, more quantity is supplied that is stated in the Law of Supply. When the price decreased, this would benefit both the people and the businesses because lesser money is being paid by consumers and more profit is being earned by businesses. Furthermore, the income of the people rose unexpectedly with 10-15 fold. When the machinery motivated millions of entrepreneurs in the globe who wanted to maximize profit, it created more employments. This would increase the unemployment rate about 8% high per year in 1820 because machines were taking over labours(Majewski, 1986). In addition, new inventions of steam, coal and expansions in railroads also increased the efficiency levels of 20-25% from all sectors especially in Britain that made all goods cheaper because of mass production, which allowed consumers to contribute in spending. This event triggered a period of economic prosperity, known as Roaring Twenties. At such high rate of productivity, this would lead to more productions and decrease in price with greater quantity demanded. This forms a chain of a cycle, as consumer's demand increases allow businesses to invest in machines to speed up the production, leading to more profit. In conclusion, the main idea of the article is related to the concepts of Law of Demand and Supply because of the growth of production and how it leads to a chain of series economically.
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INDUSTRIAL REVOLUTUION
Growth rate of income, GDP and productivity between 10th to 20th centuries.