If relative goods prices are constant, an increase
in the supply of one factor causes the output of the good that uses
that factor intensively to increase more than proportionally, and the
output of the other good to fall.
The Model
Getting started with the Rybczynski Model
Welcome the the theory page of Economic 331 International Economic's Rybczynski Theorm website! Through the next few pages we will introduce you to the concepts of factor intensities and endowments (this will provide you with important background theory to the Rybczynski Theory), the Rybczynski's box diagram, and finally the Rybczynski Model and magnification effects implied in the model. After going through this portion of the website, we hope that you will not only have a better understanding of the Rybczynski Model and its implications, but also an apperciation for fine field of Economics! To begin this learning process please proceed to the Factor Endowments and Intensities portion of the site! Enjoy!
Special Bonus Feature!
If you'd like to see the development of this animated model, be sure to check out these links!
