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.

Question

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The Answer of 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.

If the Price of the Capital Intensive Product Rises More