If the Price of the Capital - Intensive Product Rises

Multiple Choice

If the price of the capital - intensive product rises more than does the price of the land- intensive product,then

A) the country that exports the capital- intensive good will lose its comparative advantage.
B) demand will shift away from the capital- intensive product,and its production will decrease relative to that of the land- intensive product.
C) demand will shift away from the capital- intensive product,and its production will decrease.
D) the relative price of the capital- intensive product will fall to some point between the pretrade relative prices.
E) the production of the capital- intensive product will decrease,but by less than production of the land- intensive product.