Need ASAP 250 WORDS IN 1Hr

Need ASAP 250 WORDS IN 1Hr

1) Economy A is producing two goods, x and y, using both capital and labour in the production of each good. The labour force can produce either 300 units of y or 100 unit of x or any linear combination of the two. The stock of capital can produce either 200 units of y or 400 units of x. The economy is initially producing (and consuming) 50 units of x. There is now an increase of 10% in the stock of capital without affecting the productivity of either capital or
labour. Therefore, the competitive price of x would fall from 4 y per x to ½ y per x. True or false? Explain

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