In the accompanying diagram suppose the dotted lines describe the initial conditions, namely: w/r SS CC SB The relative price of cigars (PC/PS) = 4 9 The wage-rental ratio (w/r) = 7 8 The land-labor ratio in cigars (Tc/Lc) = 3 The land-labor ratio in soybeans (Ts / Ls) = 8 6 5 If the relative price of cigars (Pc /Ps ) falls to 3, the land-labor ratios employed in both cigar and soybean A production will increase 3 2 0 4 2 2 6 8 Relative price of cigars Land-labor ratio