If the Price of the Capital -Intensive Product Rises More

Multiple Choice

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

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