Mathematics, 11.02.2020 00:13 groverparham3
Assume a specific factors economy produces two goods, cloth and food, and that when representing the output of this economy graphically, cloth is on the x-axis and food is on the y-axis. When the price of cloth increases by 99% and the price of food does not changedoes not change, A. the wage rate rises by more than the increase in the price of cloththe wage rate rises by more than the increase in the price of cloth. B. the real incomes of capital owners remain the samethe real incomes of capital owners remain the same. C. labor shifts from the cloth sector to the food sectorlabor shifts from the cloth sector to the food sector. D. labor shifts from the food sector to the cloth sectorlabor shifts from the food sector to the cloth sector.
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