5.(a) Explain how a rise in the wage-rental ratio affects the input mix in the H-O model. In this

model, how do we differentiate between a labor-intensive good and a capital-intensive good?

Explain.

(b) Explain the one-to-one relationship that exists between the wage-rental ratio and the price

of cloth relative to that of food ( where cloth is a labor-intensive good and food is a capital-

intensive good).