A Model of a Two-Factor Economy Figure 4-3: Factor Prices and Good prices Relative price of cloth, PCPE Wage-rental ratio, wr Copyright C 2003 Pearson Education, Inc Slide 4-9Copyright © 2003 Pearson Education, Inc. Slide 4-9 SS Relative price of cloth, PC/PF Wage-rental ratio, w/r A Model of a Two-Factor Economy Figure 4-3: Factor Prices and Goods Prices