In class we studied graphically the effect on the real return to capital when the price of the labor-intensive good rises. Consider the case now where the price of the capital-intensive good goes down. Start your derivation from the zero-profit conditions Pc = acL w + acK r Pw = awLw + awK r Note that : r = return to capital, w = wage, aij = amount of factor j needed to produce one unit of good i. Explain also in words what happens.