Question: Please help extremely lost (8pts) The Specific Factors Model (cont.): Use the information given here to answer the following questions: Manufacturing: Sales Revenue = P..Q

Please help extremely lost

Please help extremely lost (8pts) The Specific Factors Model (cont.): Use the

(8pts) The Specific Factors Model (cont.): Use the information given here to answer the following questions: Manufacturing: Sales Revenue = P..Q = 500 Payments to Labor = W*L =200 Payments to Capital = R *K=300 Agriculture: Sales Revenue = P.Q =500 Payments to Labor = W*L =300 Payments to Land = R *T= 200 Holding the price of manufacturing constant, suppose the increase in the price of agricultural goods is 10% and the increase in the wage is 5%. (a) (6pts) Determine the impact of the price change in agricultural goods on R and (b) (2pts) As we did in class, arrange the terms in "greater than" and "less than" order to classify who gains and loses from trade in the short-run

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