Suppose that there are drastic technological improvements in
shoe production in Home such that shoe factories can operate almost
completely with computer-aided machines. Consider the following
data for the Home country:
Shoes: Sales revenue = Ps x Qs = 100 , Payments to
labor = W x Ls = 10 , Payments to labor = R x Ks = 90 , Percentage
increase in the price = ∆Ps/Ps = 40%
Computers: Sales revenue = Pc x Qc = 100, Payments to
labor...