In the 1890s nearly 50 percent of the Canadian population worked on a farm. Today, that number is less than 2 percent. One important explanation for this change is
◦ the response to a rising price of labour and a falling relative price of capital.
◦ that the marginal product of labour was falling over time while the marginal product of capital was rising.
◦ that over long periods of time, labour is always replaced by capital.
◦ that over long periods of time, capital is always replaced by labour.
◦ the response to a rising price of capital and a falling relative price of labour.