Suppose Wine Production Is Capital Intensive and Corn Production Is

Suppose wine production is capital intensive and corn production is labor intensive.An increase in the demand for wine will cause:

A) an increase in the marginal cost of corn relative to the marginal cost of wine.
B) an increase in the price of labor relative to the price of capital.
C) a decrease in the marginal cost of capital.
D) an increase in the price of capital relative to the price of labor.

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