Homework Answers
Total sales revenue in the manufacturing sector with 20% increase in price of the manufacturing = 120/100*150= $180
Total payments to labor with 10% increase in the wage(W) = 110/100*100= $110
Therefore, total payment to capital in manufacturing = $180-$110= $90
Also in agriculture, total sales revenue = $150 (Constant)
Payment to labor after 10% rise in wage = 110/100*50 = $55
Therefore, payment to land = $150-$55= $95
Therefore, percentage decrease in the renal of the land = (100-95) = 5%
Also percentage increase in the rental on capital = (90-50)/50*100 = 80%
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