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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:

Lightsaber Crystals: Sales Revenue 30
Lightsaber Crystals: Labor Payments 20
Lightsaber Crystals: Academies Payments 10
Hyperdrives: Sales Revenue 30
Hyperdrives: Labor Payments 10
Hyperdrives: Junkshop Payments 20

In this case, the rental rate to academies would change by ________. % and the rental rate to junkshops would change by ________. %.

Fill in the blanks

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