Question
Consider a specific-factors model wheretwo planets, Dantooine and Tatooine, use labor to produce lightsaber crystals (C) and hyperdrives (H). However, academies (A) are a factor
Consider a specific-factors model wheretwo planets, Dantooine and Tatooine, use labor to produce lightsaber crystals (C) and hyperdrives (H). However, academies (A) are a factor specific to lightsaber crystals, and junkshops (J) are a factor specific to hyperdrives. Suppose that labor is 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 5%, wages fall by 3%, and the price of hyperdrives does not change. Use the following information to determine how these affect the rental rates of academies and junkshops:
In this case, the rental rate to academies would change by ________. % and the rental rate to junkshops would change by ________. %. Fill in the blanks |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started