In the specific factors model, assume that the price of agricultural goods decreases while the price of manufactured goods is unchanged (PA PA 0 and PM PM 0) Arrange the following terms in ascending order RT RT RK RK PA PA PM PM W W Hint Try starting with a diagram like Figure 3 5, but change the p...

The Answer is in the image, click to view ...

In the specific-factors model, assume that the price of agricultural goods decreases while the price of manufactured

Question:

In the specific-factors model, assume that the price of agricultural goods decreases while the price of manufactured goods is unchanged (ΔPA/PA < 0 and ΔPM/PM = 0).

Arrange the following terms in ascending order:
ΔRT/RT ΔRK/RK ΔPA/PA ΔPM/PM ΔW/W Hint: Try starting with a diagram like Figure 3-5, but change the price of agricultural goods instead. LO.1

Fantastic news! We've Found the answer you've been seeking!