Suppose a country can produce two goods, bread and TVs. Both goods use labor in production. Capital is specific to TV production and land is specific to bread production. The production functions are specified as follows: 1 YTv = K (LT) 1 YB = T (LB) 3.6. What happens to the real return on capital? Real return on rent land? Show your work. (4 points) 3.7. Suppose that the area of land suitable for use in production of bread has increased. Show that it will cause labor to shift away from TV to bread sector. Hint: LTV show that decreases if T increases. (4 points) LB