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Consider a Heckscher-Ohlin model wheretwo planets, Dantooine and Tatooine, use high-skill labor and low-skill labor to produce lightsaber crystals (C) and hyperdrives (H). Suppose that

Consider a Heckscher-Ohlin model wheretwo planets, Dantooine and Tatooine, use high-skill labor and low-skill labor to produce lightsaber crystals (C) and hyperdrives (H). Suppose that both kinds of labor are freely mobile between both industries.

Question 1 of 22 Points

Click to see additional instructions What follows is a numeric fill in the blank question with 2 blanks.

Round everything to the nearest tenth (e.g., 8.25 becomes 8.3)

Suppose that by opening up to tradethe price of crystals in Tatooine falls by 10% and the price of hyperdrives does not change. Use the following information to determine how these affect the payments to high-skill and low-skill labor:

Lightsaber Crystals: Sales Revenue 300
Lightsaber Crystals: High-Skill Labor Payments 200
Lightsaber Crystals: Low-Skill Labor Payments 100
Hyperdrives: Sales Revenue 200
Hyperdrives: High-Skill Labor Payments 40
Hyperdrives: Low-Skill Labor Payments 160

In this case, the wage rate to high-skilled labor would change by ______ % and the wage rate to low-skilled labor would change by _______. %.

Fill in the blanks

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