(Table: Production and Prices in Two Industries) According to the information provided in the table, if the price of the agriculture good decreases to $5, then:
A) wages in the manufacturing sector will be $25.
B) the wage rate in the agriculture sector will be $25.
C) the marginal product of both sectors will decline.
D) more agriculture goods should be imported.

Question

(Table: Production and Prices in Two Industries) According to the information provided in the table, if the price of the agriculture good decreases to $5, then: 
A) wages in the manufacturing sector will be $25. 
B) the wage rate in the agriculture sector will be $25. 
C) the marginal product of both sectors will decline. 
D) more agriculture goods should be imported.

Quizplus · Accepted Answer

According to the table, when the price of the agriculture good decreases to $5, the wage rate in the agriculture sector decreases to $15. Therefore, the answer is B as it states that the wage rate in the agriculture sector will be $25, which is incorrect.

(Table: Production and Prices in Two Industries) According to the Information