5. The following equations describe the long-run situation for prices and costs, where the numbers indicate the amounts of labor and capital needed to produce a unit of wheat and cloth. W is the wage rate/hour and R is the rental rate/hour.

Price of wheat = 1 W + 2 R

Price of cloth = 2 W + 1 R

In autarky, the price of wheat is 5 and the price of cloth is 4. As trade opens up, wheat price rises from 5 to 6. Cloth price remains at 4.

Consider Hypothetical Case 1 above. In autarky, how many units of wheat can a worker buy with one hour of labor?

A. 5/4

B. 1/4

C. 1/5

D. 2/5

E. None of the above.