In the Specific Factors Model,a 5% Increase in the Price

question 37

Multiple Choice

In the specific factors model,a 5% increase in the price of food accompanied by a 5% increase in the price of cloth will cause wages to _,the production of cloth to _,and the production of food to .

• A)increase by less then 5%; decrease; increase
• B)remain constant; increase; increase
• C)increase by 5%; remain unchanged; remain unchanged
• D)increase by more then 5%; increase; remain unchanged
• E)remain constant; decrease; decrease

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