In Figure 13, as one moves from S to V, is the country producing more or less

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In Figure 13, as one moves from Sʹ to Vʹ, is the country producing more or less of the capital-intensive good and less or more of the labor-intensive good? What should happen to the demand for labor and the demand for capital as this movement takes place? What will happen to relative factor prices? Will the slope of the isoquants at the point of tangency on the contract curve be the same at Vʹ as it was at Sʹ? Why or why not?
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International Economics

ISBN: 9780078021671

8th Edition

Authors: Dennis Appleyard, Alfred Field

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