If the Price of the Capital Intensive Product Rises More

question 6

Multiple Choice

If the price of the capital intensive product rises more than does the price of the land intensive product,then

• A) the relative price of the capital intensive product will fall to some point between the pretrade relative prices.
• B) demand will shift away from the capital-intensive product, and its production will decrease.
• C) demand will shift away from the capital-intensive product, and its production will decrease relative to that of the land intensive product.
• D) the production of the capital-intensive product will decrease, but by less than production of the land-intensive product.
• E) the country that exports the capital-intensive good will lose its comparative advantage.

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Definitions:

Aqueous Humor

A clear, watery fluid located in the eye between the lens and the cornea, providing nutrients and maintaining pressure.

Vitreous Humor

A clear, gel-like substance that fills the space between the lens and the retina of the eye, helping it maintain its round shape.

Sebum

An oily substance produced by the sebaceous glands to moisturize and protect the skin.

Conjunctiva

The thin, transparent tissue that covers the white part of the eye and lines the inside of the eyelids.