erfect competition thus both factors are mobile. This model explains how the variations of the price or quantity of one factor can have an influence upon the other. For example if the quantity of land suddenly varies this will have little effect upon cloth who is more labour intensive, on the other hand food who is more land intensive will probably have an important price and wage variation ; therefor it is possible to assume that there is an important correlation between the rent of land and the wages of labour, and there is also corr
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