ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The economy underwent abrupt and extreme inflation. Since it was so difficult (and dangerous) to procure goods through trade and to produce them, the prices of both goods produced locally and those imported from afar skyrocketed.

Detailed explanation-2: -However, two interesting phenomena occurred following the Black Death that had repercussions for centuries: the proportion of livestock to farmed land increased dramatically, and the peasant classes gained better wages and unprecedented mobility leading to a demand for more and higher quality foods.

Detailed explanation-3: -Those cities hit with the plague shrank, leading to a decrease in demand for goods and services and reduced productive capacity. As laborers became more scarce, they were able to demand higher wages. This had several major effects: Serfdom began to disappear as peasants had better opportunities to sell their labor.

Detailed explanation-4: -The plague had an important effect on the relationship between the lords who owned much of the land in Europe and the peasants who worked for the lords. As people died, it became harder and harder to find people to plow fields, harvest crops, and produce other goods and services. Peasants began to demand higher wages.