20. The unconditional demand for capital for a company is given by K (P, w, r) = P (11`2, where P is the price of the product, w is the hourly wage and r is the hourly price of capital income Therefore, if the wage increases we can ensure that for capital the substitution effect than the production effect.

to. It has an opposite sign and is greater in absolute value

b. Has the same sign

c. It has an opposite sign and is less in absolute value

d. It has the opposite sign and is equal in absolute value