What is the impact on the rental on capital and the rental on land?

Man Show more Need help with Specific Factor Model in international trade. Use the information below for Home: Manufacturing: Sales Revenue = PMQM = 120 Payments to labor WLM = 80 Payment to capital = RKK = 40 Agriculture: Sale Revenue = PMQM = 120 Payments to labor = WLM = 30 Payments to land = RKK = 90 a) Due to trade the price of the manufactured commodity (PM) increase by 10% the price of the Agricultural commodity (PA) remain the same and Wages increase by 8%. What is the impact on the rental on capital and the rental on land? b) using the answer from part (a) mention who will be in favor of trade and who will oppose it? How is this result different from the resullt in the Ricardian model? Show less

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