Question: Consider the specific-factors model with 2 goods: manufacturing and agriculture. Manufacturing requires labour and sector-specific capital, while agriculture requires labour and sector-specific land. Labour is

Consider the specific-factors model with 2 goods: manufacturing and agriculture. Manufacturing requires labour and sector-specific capital, while agriculture requires labour and sector-specific land. Labour is freely mobile across sectors. The government is considering to impose an import tariff on agricultural products. Which of the following is true?

(a) The relative price of agricultural products will go down.

(b) Capitalists will support this initiative. 

(c) Agricultural production will increase.

(d) Marginal product of labour will decrease in manufacturing. 

 Explain your answer clearly

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