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) Use graphical analysis to show the effects of trade on the relative factor prices and relative factor demands in Zambia. Put relative wage on
) Use graphical analysis to show the effects of trade on the relative factor prices and relative factor demands in Zambia. Put relative wage on the Y-axis and relative labor on the X-axis. Write a clear statement about the direction of the relative factor price change and the changes in relative labor demand in each sector. What will happen to real wages and real rental on capital in Zambia?
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