Use the following information to answer the questions below:

Computers: Soybeans:

Total revenue = 120 Total revenue = 120

Payments to labor = 60 Payments to labor = 80

Payments to capital = 60 Payments to land = 40

Holding the price of computers constant, suppose the price of soybeans rises 10% and that the wage rate increases 5%. a. What is the effect of these changes on the rental rate of capital? (10p) b. What is the effect of these changes on the rental rate of land? (5p)