The Following Input-Requirements Data Are for Country A, a Capital-Abundant

Multiple Choice

The following input-requirements data are for country A, a capital-abundant country where they produce nothing but bread and wine using only capital and labor as inputs. $$\begin{array} { | c | c | c | } \hline & 1 \text { pound of bread } & \text { 1 gallon of wine } \\\hline \text { Capital input } & 5 \text { units } & 20 \text { units } \\\hline \text { Labor input } & 4 \text { units } & 10 \text { units } \\\hline\end{array}$$ Which of the following is most likely to happen if country A engages in free trade with other countries?

A) The prices of both bread and wine will fall in the domestic market.
B) The price of bread will fall but the price of wine will rise in the domestic market.
C) The prices of both bread and wine will rise in the domestic market.
D) The price of bread will rise but the price of wine will fall in the domestic market.