A change in the relative price of one good versus another will cause a change in marginal product and the allocation of labor resources. When the price of good A increases relative to the price of good B and labor is mobile, the equilibrium real wage in industry A will:
a. rise in terms of good B.
b. fall in terms of good B.
c. remain the same.
d. rise in terms of good A.
Ans: a. rise in terms of good B.
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