Manufacturing: Sales revenue = PM - QM = 150 Payments to labor = W - LM = 50 Payments to capital = RK - K = 100 Percentage change in Price of manufacturing goods = -10% Agriculture: Sales revenue = P A - Q A = 150 Payments to labor = W - LA = 50 Payments to land = RT - T = 100 Percentage change in the price of agricultural goods = 10% Note that in each sector percentage change in rental rate is given as: Rental rate of land in agric., A RT/RT = (A Pal Pa)((Pa.Qa)/(R. D) (A W/W)((W. La)/(R. '0) Rental rate of capital in manuf., ARK] RK= (A Pm/Pm)((Pm.Qm)/(R.K)) (AW/W)((W.Lm)/(R.K)) Assume that the wage rate has also increased by 10% a. Calculate the impact of the increase in the price of agricultural goods and the decrease in the price of the manufacturing goods) on the rental rate of land? SHOW YOUR WORK! b. Calculate the impact of the increase in the price of agricultural goods (and the decrease in the price of the manufacturing goods) on the rental rate of capital? SHOW YOUR WORK! c. Explain what has happened to the real rental of land and the real rental of capital. In other words, based on your answer in a) above, why would the rental rate on land and capital change in this way? d. For the agricultural sector, compare the percentage changes in price, wage, and rental rate on land. Which one is the greatest? Which one is the smallest? Explain why