(Table: Revenues and Costs for Two Industries) Suppose That the Table

Multiple Choice

(Table: Revenues and Costs for Two Industries) Suppose that the table gives payments to labor, land, and capital in the manufacturing and agriculture sectors. Suppose further that the price of manufacturing goods increases by 10% (P_M) , and wages increase by 5%; then the rental rate on capital will:

A) decrease by 16%.
B) increase by 21.67%.
C) remain unchanged.
D) decrease by 21.67%.