What happens to relative utilization of labor in production

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Let's use cloth and food, with inputs of labor andland, with cloth the labor intensive industry. If the relativeprice of food increases in the 2 good HO economy, what happens tothe relative utilization of the labor in the production of food?What about in the production of cloth? If applicable, illustratethis relationship with graphs, and if there is an effect, explain the mechanism by which these relative uses are changed. What implications does this have for the welfare of different groups insociety?

Reference no: EM13243891

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