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Unformatted text preview: K-intensive commodity by shifting resources from L-intensive commodity to K-intensive commodity. So there will be a(n) decrease (increase/decrease) in the demand for labor and increase (increase/decrease) in the demand for capital. With fixed factor endowments, the price of labor will decrease and the price of capital will increase . The opposite will occur in the labor abundant country. PART D 1,2,3 at the jpg 1 4) a) TRUE b) FALSE c) FALSE 2...
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This note was uploaded on 05/26/2010 for the course ECON 353 taught by Professor Erol during the Spring '10 term at Middle East Technical University.
- Spring '10
- International Economics