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A country has two industries: pharmaceuticals and the automobile. The output of pharmaceutical industry (P) is produced using capital (K) and medical personnel (M) and

 A country has two industries: pharmaceuticals and the automobile. The output of pharmaceutical industry (P) is produced using capital (K) and medical personnel (M) and that of automobile industry (A) is produced using capital (K) and engineers (E). If there is an increase in the relative price of automobile, what will its impact be on income distribution among factors of production. Explain using diagrams.  

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