A) Using one graph to show demand for labor in both sectors (With the two y- axes), label the initial equilibrium wage and allocation of workers across sectors. B) Home transitions from autarky to free trade and the relative price of computers increases, Pc increases and PB is constant. Which good will Home export? C) What will happen to the real wage in terms of computers, the real wage in terms of blueberries, the real return to capital, and the real return to land when the economy transitions to free trade. Explain briefly, either with words, math,

A) Using one graph to show demand for labor in both sectors (With the two y- axes), label the initial equilibrium wage and allocation of workers across sectors. B) Home transitions from autarky to free trade and the relative price of computers increases, Pc increases and PB is constant. Which good will Home export? C) What will happen to the real wage in terms of computers, the real wage in terms of blueberries, the real return to capital, and the real return to land when the economy transitions to free trade. Explain briefly, either with words, math,

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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