Question 1:
In the short-run specific-factors model, consider a decrease in the stock of land. For example, suppose a natural disaster decreases the quantity of arable land used for planting crops.
a. Redraw panel (a) of Figure 5-11 starting from the initial equilibrium at point A.
Question 2:
What happens to the rentals on capital and land?
?Important these models could be applicable for problem. Specific factors model and box diagram. These models HAVE to be included Lmk
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