Question 4: Household Production RE CANAL 1820 1845 In the above figure, the sha

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Question 4: Household Production RE CANAL 1820 1845 In the above figure, the shaded regions represent the areas with the highes level of household production in the state of New York in 1820 and 1845. Looking at the figure, how does the introduction of the Erie Canal affect the distribution of household production? B) To understand the changes described in part one, we need examine the market for clothing (e.g. one of the major products of household production). Households had to choose between buying clothes from the market or making their own. Show the market for clothing in 1820 and indicate the relative cost of producing clothes at home (e.g. convert the time and effort of producing the clothes into a dollar value sa you can compare the market and household price of clothes)

Explanation / Answer

Before 1815, Americans were not much focused on the development of infrastructure in the form of construction of roads and canals. But after 1815, the people realized the importance of better infrastructure and construction of canals to improve the connectivity and transfer of cargos.

In 1820, people were focused more on household production as there was no better infrastructure to connect and carry the cargos from New York to Atlantic Ocean. But after the construction of Erie Canal in 1825, the connectivity improves. Erie Canal was built to create a navigable water route from New York and the Atlantic Ocean to the Graet Lakes. Due to the improved connectivity the household production was carried easily from one country to the other.Thus the household production gets distributed over much larger areas and people were offered with much of choices apart from household production

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