Problem
In as one moves from S9 to V9 , is the country producing more or less of the capital-intensive good and less or more of the labor-intensive good? What should happen to the demand for labor and the demand for capital as this movement takes place? What will happen to relative factor prices? Will the slope of the isoquants at the point of tangency on the contract curve be the same at V9 as it was at S9? Why or why not?