If Australia has relatively more land per worker,and Belgium has relatively more capital per worker,then if trade began between these two countries
A) the relative price of the capital- intensive product would decrease in Belgium.
B) the relative price of the land- intensive product would increase in Belgium.
C) the relative price of the capital- intensive product would increase in Australia.
D) the relative price of the land- intensive product would increase in Australia.
E) relative product prices would diverge between Australia and Belgium.
Correct Answer:
Verified
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