Explain your answer in up to 200 wordsand using a diagram:In the Pure Specific Factors model with twosectors, Cars (C) and Wheat (W), Capital (K)is specific to C and Land (A) is specific to W.If the government imposes a tariff on theimports of W, thenA. Both owners of K and owners of A willbenefit.B. Owners of A will benefit.C. Owners of K will benefit.D. Neither owners of K nor owners of A willbenefit.

Given that it is a two-factor model, and a tax is applied on W imports, W will become more…

Answered: Explain your answer in up to 200 words…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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In a Mixed Specific Factors model with two sectors, Cars (C) and Wheat (W), Capital (K) is specific to C and Land (A) is specific to W. If the government imposes a tariff on the imports of W then Both owners of K and owners of A will benefit. Owners of A will benefit. Owners of K will benefit. Neither owners of K nor owners of A will benefit. Include diagram*** and explanation attached is graph for reference
In the Pure Specific Factors model with two sectors, Cars (C) and Wheat (W), Capital (K) is specific to C and Land (A) is specific to W. If the government imposes a tariff on the imports of W then Both owners of K and owners of A will benefit. Owners of A will benefit. Owners of K will benefit. Neither owners of K nor owners of A will benefit. use the diagram to explain with it
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Explain your answer in up to 200 words and using a diagram: In the Pure Specific Factors model with two sectors, Cars (C) and Wheat (W), Capital (K) is specific to C and Land (A) is specific to W. If the government imposes a tariff on the imports of W, then