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In the Specific Factors Model,a 0% Increase in the Price

Question 20

Multiple Choice

In the specific factors model,a 0% increase in the price of food accompanied by a 5% increase in the price of cloth will cause wages to _,the production of cloth to _,and the production of food to .


A) remain constant; decrease; decrease
B) increase by more then 5%; increase; remain unchanged
C) remain constant; increase; increase
D) increase by less then 5%; increase; decrease
E) increase by 5%; remain unchanged; remain unchanged

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