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

question 61

Multiple Choice

In the specific factors model,a 5% increase in the price of food accompanied by a 0% 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) increase by 5%; remain unchanged; remain unchanged
• C) increase by more then 5%; increase; remain unchanged
• D) remain constant; increase; increase
• E) remain constant; decrease; decrease

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