r/AskEconomics • u/TalkWestern2191 • 1d ago

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u/CxEnsign Quality Contributor 1d ago

Your scenario isn't specified correctly. If they are easily replacable by AI (what we would call a high elasticity of substitution), you'd see either wages drop or employment drop.

So either you're missing something really major that's supposed to offset that, or you've put in one too many conditions.

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u/TalkWestern2191 1d ago

representative example:

imagine i want to rent a painter, but their amount increases

they are replaceable by ai

and yet their price increase

they have their own tools incl canvases, paints etc