Specific factor model: Suppose that there are two sectors in the
United States: the food sector, with land as the specific factor,
the manufacturing sector, and capital as the specific element.
Labor can flow between departments.
1. Suppose a good weather makes several states have a big
harvest, which leads to an 8% drop in food prices. Please elaborate
and analyze the changes of labor mobility, nominal income and
actual income of labor force and factor owners (please show
graph)....