question archive Use the following information to answer the questions below: Manufacturing: Sales revenue = Pm * Qm = 50 Payments to labor = W * Lm = 100 Payments to capital = Rk * K = 50 Agriculture: Sales revenue = Pa * Qa = 150 Payments to labor = W *La = 50 Payments to land = Rt * T = 100 Holding the price of manufacturing constant, suppose the increase in the price of agriculture is 10% and the increase in the wage is 5%
Use the following information to answer the questions below: Manufacturing: Sales revenue = Pm * Qm = 50 Payments to labor = W * Lm = 100 Payments to capital = Rk * K = 50 Agriculture: Sales revenue = Pa * Qa = 150 Payments to labor = W *La = 50 Payments to land = Rt * T = 100 Holding the price of manufacturing constant, suppose the increase in the price of agriculture is 10% and the increase in the wage is 5%
Subject:EconomicsPrice: Bought3
Use the following information to answer the questions below:
Manufacturing: Sales revenue = Pm * Qm = 50
Payments to labor = W * Lm = 100
Payments to capital = Rk * K = 50
Agriculture: Sales revenue = Pa * Qa = 150
Payments to labor = W *La = 50
Payments to land = Rt * T = 100
Holding the price of manufacturing constant, suppose the increase in the price of agriculture is 10% and the increase in the wage is 5%.
If, instead of the situation given in problem, the price of manufacturing was to fall by 10%, would landowners or capital owners be better off? Explain. How would the decrease in the price of manufacturing affect labor? Explain.
