According to hazlitt, parity prices for agricultural products might increase the purchasing power of farmers and help them be more prosperous, but what would the effect be on city workers?

Answer :

After the increase in price for agricultural products the city workers will have their purchasing power reduced.

According to economist Henry Hazlitt, parity pricing hurts consumers and decreases national wealth. Parity is a notion that farmers must be paid on par with the cost of industrial goods and farm equipment.

According to Hazlitt, parity prices for agricultural products would increase the purchasing power of farmers and help them become more prosperous, and on other hand, it would effect the city workers by reducing their purchasing power.

Hence, this will affect the quantity of goods and services that city workers could buy with a monetary unit.

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