Stopler Samuelson

Suppose a country produces two goods: capital-intensive X-ray machines and labor-intensive cloth. The relative price of X-ray machines in terms of unit of cloth is Px/Pc. Suppose we were to draw a Stolper Samuelson line to capture the equilibrium relationship between relative product prices Px/Py (on the horizontal axis) and the wage rental ratio w/r (on the vertical axis). Which way will the SS line slope in this diagram? Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a It will slope up b It will slope down C It will have an inverted-U shape, sloping up at first but then down d It will be a horizontal line