(Table: Sales and Payments) Suppose that the price of the agricultural good increases with no change in the price of the manufactured good. Which of the following resources will show the most gain?
A) capital
B) labor
C) land
D) capital and labor

Question

(Table: Sales and Payments) Suppose that the price of the agricultural good increases with no change in the price of the manufactured good. Which of the following resources will show the most gain? 
A) capital 
B) labor 
C) land 
D) capital and labor

Quizplus · Accepted Answer

With an increase in the price of the agricultural good, the resource that will show the most gain is land. This is because an increase in price will result in higher profits for landowners who lease their land to agricultural producers. Capital and labor may see some gains as well, but the largest gains will be seen in land.

(Table: Sales and Payments) Suppose That the Price of the Agricultural