Suppose country A, a labor-abundant country, produces only wheat and cloth. The following equations illustrate the prices and costs of wheat and cloth in the country , where the numbers indicate the amounts of labor and land needed to produce a unit of wheat and cloth. ‘ w ’ is the wage rate and ‘ r ’ is the rental rate of land . Price of wheat = 1w + 2r Price of cloth = 2w + 1r Suppose country A engages in free trade and the price of cloth increases from $3 per unit to $4 per unit. T he price of wheat remains unchanged at $3 per unit . T he wage rate and the rental rate change to _____ and _____ respectively. _____ . a. $ 3/8; $ 7/8 b. $1; $5/3 c. $ 5/3; $ 2/3 d. $ 4/7; $ 3/7