Home has 12,000 units of labor available. It can produce two goods, apples and bananas. The unit labor requirement in apple production is 100, while in banana production is 75. There is now also another country, Foreign, with a labor force of 18,000. Foreign’s unit labor requirement in apple production is 120, while in banana production is 150.Construct the world relative supply curve of banana. What will happen if Pa/Pb < 4/5? 1. Home has 12,000 units of labor available. It can produce two goods, apples andbananas. The unit labor requirement in apple production is 100, while in bananaproduction is 75. There is now also another country, Foreign, with a labor force of18,000. Foreign's unit labor requirement in apple production is 120, while in bananaproduction is 150.PAb. Construct the world relative supply curve of banana. What will happen ifPB

The relative price of banana = Quantity of apples / Quantity of bananas/

1. Home has 12,000 units of labor available. It can produce two goods, apples and bananas. The unit labor requirement in apple production is 100, while in banana production is 75. There is now also another country, Foreign, with a labor force of 18,000. Foreign's unit labor requirement in apple production is 120, while in banana production is 150. PA b. Construct the world relative supply curve of banana. What will happen if4 <:? PB

1. Home has 12,000 units of labor available. It can produce two goods, apples and bananas. The unit labor requirement in apple production is 100, while in banana production is 75. There is now also another country, Foreign, with a labor force of 18,000. Foreign's unit labor requirement in apple production is 120, while in banana production is 150. PA b. Construct the world relative supply curve of banana. What will happen if4 <:? PB

MACROECONOMICS

14th Edition

ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter18: International Trade And Comparative Advantage

Section: Chapter Questions

Problem 2TY

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Home has 1,200 units of labor available. It can produce two goods, apples and bananas. The unit labor requirement in apple production is 3, while in banana production it is 2. There is now also another country, Foreign, with a labor force of 800. Foreign’s unit labor requirement in apple production is 5, while in banana production it is 1. Graph Foreign’s production possibility frontier. Construct the world relative supply curve.
Home has 1,200 units of labor available. It can produce two goods, apples and bananas.The unit labor requirement in apple production is 3, while in banana production it is 2. Foreign has a labor force of 800. Foreign's unit labor requirement in apple production is 5, while in banana production it is 1. 1. After trade, which price would be possible? 2 or 6? 2 Describe the pattern of trade. ? 3 Using the price you have chosen in question 3, show that both Home and Foreign'gain from trade ?
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