In the specific factors model suppose that a country


In the specific factors model, suppose that a country experiences a productivity shock that results in a 10% increase in the price of apples and a 5% increase in the price of boats. Also, assume that apples are land-specific goods, while boats are capital-specific. How would this change in prices affect the production of apples and boats? How would this affect the welfare of capital owners, landowners, and workers?

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Basic Computer Science: In the specific factors model suppose that a country
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