Question: In the specific factors model, a 5% increase in the price of food accompanied by a 0% increase in the price of cloth will cause

In the specific factors model, a 5% increase in the price of food accompanied by a 0% increase in the price of cloth will cause wages to ________, the production of cloth to ________, and the production of food to ________.

a) Increase by less than 5%; decrease; increase

b) Increase by 5%; remain unchanged; remain unchanged

c) Increase by more than 5%; increase; remain unchanged

d) Remain constant; increase; increase

e) Remain constant; decrease; decrease

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