Canada has a much lower population density than does Japan. Therefore, the price of land (relative to the price of labor) is lower in Canada than in Japan. Consider a Canadian firm and a Japanese firm, both producing rice, both having access to the same technologies, and both striving to minimize costs. Now suppose that the relative price of land rises in Canada but remains the same in Japan. The effect on the use of inputs will be Question 20 Not yet answered Marked out of 0.50 to P Flag question Select one: a. decrease the land/labor ratio for both the Canadian and the Japanese firms. b. increase the land/labor ratio for both the Canadian and the Japanese firms. C. decrease the land/labor ratio for the Canadian firm. d. increase the landlabor ratio for the Canadian firm. e. not change the land/labor ratio for either firm. Question 21 Under perfect competition, the demand curve facing an individual firm is Not yed anwered Select one: Marked out of 0.00 a infinitely price elastic. Pfag question b. the sameas the industry's demand curve. C upward sloping d. dowmward uloping