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Explain clearly U X K/L in the production of ships 4 K/L in the production of chairs 2 1 2 5 The following Lerner diagram

Explain clearly

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U X K/L in the production of ships 4 K/L in the production of chairs 2 1 2 5 The following Lerner diagram shows unit value isoquants for two products in a country which functions in a way compatible with the general framework of the Heckscher-Ohlin model. Which of the following statements are true? a. If the changes shown in the diagram were caused by changes in output prices, then ships definitely became more expensive. b. If the changes shown in the diagram were caused by changes in output prices, then chairs definitely became more expensive. C. If this diagram describes the effects of the opening of the economy, then the country became the exporter of ships after the opening. d. If this diagram describes the effects of the opening of the economy, then labour was the country's abundant factor

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