Extra Credit - Gains from Trade . For the following changes in prices and wage, calculate changes in returns to capital and land. Who gains and who loses? Use the information in slide #43. . Manufacturing: Percentage increase in price = A Py/PM = 10% Agriculture: Percentage increase in price = A PAIP, = - 10% Both industries: Percentage increase in the wage = A W/W = 1% ARK (A PM/PM ) . PM . OM - (AWIW ) . W . Ly RK RK . K ART (APAIPA) . PA . QA - (AWIW ) . W . LA RT RT . T Who gains? Capital owners or land owners? . Does labor gain? . Is there magnification effect