Multiple Choice
Suppose that due to flooding in Louisiana,100,000 farmers relocate from Louisiana to Texas.Assuming that land and labor are complements in a farming production function,what would happen to the wages earned by workers and the rents earned by landowners in Texas?
A) Both wages and rents would increase.
B) Both wages and rents would decrease.
C) Wages would increase, and rents would decrease.
D) Wages would decrease, and rents would increase.
Correct Answer:

Verified
Correct Answer:
Verified
Q134: Figure 18-1<br>On the graph, L represents the
Q206: The marginal product of land depends on
Q216: Scenario 18-7<br>Suppose the following events occur in
Q261: Value of marginal product is defined as
Q273: Suppose that the labor market for high
Q388: Figure 18-4<br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB2185/.jpg" alt="Figure 18-4
Q393: Omega Custom Cabinets produces and sells custom
Q454: Scenario 18-2<br>Gertrude Kelp owns three boats that
Q456: The accumulation of machinery and buildings used
Q509: Scenario 18-8<br>Suppose the following events occur in