27. The statement that "if an import tariff raises the relative price of the imported good, the price of the factor used intensively in its production will rise relative to both commodity prices, while the price of the other factor will fall relative to both commodity prices" is called (a) the cancellation axiom (b) the Stolper-Samuelson theorem (c) the law of demand and supply (d) the law of alternatives the principle of comparative advantage

27. The statement that "if an import tariff raises the relative price of the imported good, the price of the factor used intensively in its production will rise relative to both commodity prices, while the price of the other factor will fall relative to both commodity prices" is called (a) the cancellation axiom (b) the Stolper-Samuelson theorem (c) the law of demand and supply (d) the law of alternatives the principle of comparative advantage

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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