a. Determine the impact of the increase in the price of agricul- ture on the rental on land and the rental on capital. videla odl bas ebenso ai b. Explain what has happened to the real rental on land and the real rental on capital.

Exploring Economics
8th Edition
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:Robert L. Sexton
Chapter20: Economic Growth In The Global Economy
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6. Use the information given here to answer the following questions:
Manufacturing:
Sales revenue PM QM = 150
Payments to labor=W-LM=100
Payments to capital=Rx K = 50
Agriculture: largsib e diw gairde vil
Sales revenue = PA-QA = 150g to song orb og ands and
Payments to labor=W.LA = 50
seogqu2.01
Payments to land=RT T=100
admul zboog own soub
Holding the price of manufacturing constant, suppose the
increase in the price of agriculture is 20% and the increase in the
wage is 10%.
a. Determine the impact of the increase in the price of agricul-
ture on the rental on land and the rental on capital.
bas ebens ni
b. Explain what has happened to the real rental on land and the
real rental on capital.
rurgiël od zelimia dosts & al
Transcribed Image Text:6. Use the information given here to answer the following questions: Manufacturing: Sales revenue PM QM = 150 Payments to labor=W-LM=100 Payments to capital=Rx K = 50 Agriculture: largsib e diw gairde vil Sales revenue = PA-QA = 150g to song orb og ands and Payments to labor=W.LA = 50 seogqu2.01 Payments to land=RT T=100 admul zboog own soub Holding the price of manufacturing constant, suppose the increase in the price of agriculture is 20% and the increase in the wage is 10%. a. Determine the impact of the increase in the price of agricul- ture on the rental on land and the rental on capital. bas ebens ni b. Explain what has happened to the real rental on land and the real rental on capital. rurgiël od zelimia dosts & al
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