Given the Following Diagram That Shows the Relationship Between the Price

Multiple Choice

Given the following diagram that shows the relationship between the price of good X relative to the price of good Y (P_X/P_Y) and the wage rate relative to the return to capital or rental rate on capital (w/r) , and also indicates relative factor prices in country A [(w/r) _A], relative factor prices in country B [(w/r) _B], relative autarky goods prices in country A [(P_X/P_Y) _A], relative autarky goods prices in country B [(P_X/P_Y) _B], and (w/r) [where the (P_X/P_Y) associated with (w/r) is the highest (P_X/P_Y) on the graph]:

At (w/r) values less than (w/r) , __________ is the relatively labor-intensive good and, at (w/r) values greater than (w/r) , __________ the relatively labor-intensive good.

A) good X; good Y is
B) good X; good X also is
C) good Y; good Y also is
D) good Y; good X is