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The Kingdom of the North and the Iron Islands produce 2 goods, swords (S) and fish (F). Assume that ports (denoted by P) is a factor to the fish industry, and mines are a factor specific to swords (denoted M). Furthermore, assume White Walker labor (L) is freely mobile across sectors. Consider the Iron Islands. Holding constant the price of swords, suppose an increase in the price of fish of 75% and the decrease in the White Walker wage is 50%. Determine the impact of these changes on the real rentals on ports and mines by using information below (first you need to figure out the payments to all the factors):
Swords:
Sales revenue PSQS = 15
Payments to White Walker labor WL = 10
Fish:
Sales revenue PFQF = 90
Payments to ports RpP = 85
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