pecific-factors model-part 2 Suppose that land is specific to corn, capital is specific to automobiles, labor is mobile between sectors, and payments are as follows: Automobiles: Sales revenue = 200; Payments to labor = 100; Payments to capital = 100 Corn: Sales revenue = 200; Payments to labor = 50; Payments to land = 150 Suppose price of corn doesn't change, the price of automobiles increases by 20%, and the wage increases by 10%. Calculate the Nominal Percentage change on Rental of Capital and put your answer in the box below. (Keep your answer in percentage with 2 decimals. For example, If you got 15.26% , fill in 15.26 in the box below. Do NOT use 0.1526. )
pecific-factors model-part 2 Suppose that land is specific to corn, capital is specific to automobiles, labor is mobile between sectors, and payments are as follows: Automobiles: Sales revenue = 200; Payments to labor = 100; Payments to capital = 100 Corn: Sales revenue = 200; Payments to labor = 50; Payments to land = 150 Suppose price of corn doesn't change, the price of automobiles increases by 20%, and the wage increases by 10%. Calculate the Nominal Percentage change on Rental of Capital and put your answer in the box below. (Keep your answer in percentage with 2 decimals. For example, If you got 15.26% , fill in 15.26 in the box below. Do NOT use 0.1526. )
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Specific-factors model-part 2
Suppose that land is specific to corn, capital is specific to automobiles, labor is mobile between sectors, and payments are as follows:
Automobiles:
Sales revenue = 200;
Payments to labor = 100;
Payments to capital = 100
Corn:
Sales revenue = 200;
Payments to labor = 50;
Payments to land = 150
Suppose price of corn doesn't change, the price of automobiles increases by 20%, and the wage increases by 10%.
Calculate the Nominal Percentage change on Rental of Capital and put your answer in the box below.
(Keep your answer in percentage with 2 decimals. For example, If you got 15.26% , fill in 15.26 in the box below. Do NOT use 0.1526. )
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