Doubling L is likely to:
A) increases the relative price of the L-intensive commodity
B) reduces the relative price of the K-intensive commodity
C) reduces the relative price of the L-intensive commodity
D) any of the above
Correct Answer:
Verified
Q1: Dynamic factors in trade theory refer to
Q2: Doubling the amount of L and K
Q4: Doubling only the amount of L available
Q5: The Rybczynski theorem postulates that doubling L
Q6: A 50 percent productivity increase in the
Q7: Doubling L with trade in a small
Q8: A proportionately greater increase in the nation's
Q9: Technical progress that increases the productivity of
Q10: Doubling K with trade in a large
Q11: An increase in tastes for the import
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