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Question 1:
In the short-run specific-factors model, consider a decrease in the stock of land. For example, suppose a natural disaster decreases the quantity of arable land used for planting crops.
a. Redraw panel (a) of Figure 5-11 starting from the initial equilibrium at point A.
Question 2:
What happens to the rentals on capital and land?
?Important these models could be applicable for problem. Specific factors model and box diagram. These models HAVE to be included Lmk
Attachment:- internationaltrade.zip
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