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(5 pts.) Assume a specific-factors economy produces two goods, cloth and food, and that when representing the output of this economy graphically, cloth is on

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(5 pts.) Assume a specific-factors economy produces two goods, cloth and food, and that when representing the output of this economy graphically, cloth is on the xaxis and food is on the y-axis. When the price of food increases by 8% and the price of cloth does not change: (Give a one or two sentence explanation of your answer.) a. labor shifts from the food sector to the cloth sector b. the marginal product of labor in the food sector declines c. the relative outputs of the two goods do not change (:1. the marginal product of labor in the cloth sector declines

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