× Didn't find what you were looking for? Ask a question
Top Posters
Since Sunday
t
7
m
6
k
6
F
5
j
5
t
5
j
5
G
5
f
5
a
5
d
5
c
5
New Topic  
Chako Chako
wrote...
Posts: 2948
8 years ago
If the price of the capital intensive product rises more than does the price of the land intensive product, then
A) demand will shift away from the capital-intensive product, and its production will decrease relative to that of the land intensive product.
B) the relative price of the capital intensive product will fall to some point between the pretrade relative prices.
C) demand will shift away from the capital-intensive product, and its production will decrease.
D) the country that exports the capital-intensive good will lose its comparative advantage.
E) the production of the capital-intensive product will decrease, but by less than production of the land-intensive product.
Textbook 
International Economics: Theory and Policy

International Economics: Theory and Policy


Edition: 10th
Author:
Read 113 times
3 Replies

Related Topics

Replies
wrote...
8 years ago
B
Chako Author
wrote...
8 years ago
Correct!
wrote...
8 years ago
Don't forget to vote my answer as best Nerd Face
New Topic      
Explore
Post your homework questions and get free online help from our incredible volunteers
  999 People Browsing
Related Images
  
 42
  
 287
  
 340
Your Opinion
What's your favorite math subject?
Votes: 314