Need help understanding parts H,I,J and K. Suppose Home has 200 units of labor. It can produce two goods, apples and bananas. InHome a worker can produce 3 apples or 4 bananas.a. Graph Home's PPF, with apples in the horizontal axis.b. What is the opportunity cost of apples?c. In the absence of trade - when Home is isolated - what would the relative price be?d. Now suppose there is another country, Foreign, with a labor force of 200. In Foreign aworker can produce 2 apples or 5 bananas.e. Graph Foreign's PPF, with apples in the horizontal axis.f. Construct the world relative supply curve, expressing the relative price of apples (PA/PB)in terms of the relative quantity of apples (QA/QB).g. Now suppose that world relative demand takes the following form:RD:QAQB=PBPAh. Graph the relative demand curve together with the relative supply curve.i. What is the equilibrium relative price of apples?j. Describe the pattern of trade (who exports what).k. Assume Home workers are less productive in both industries. What happens(conceptually) to the gains from trade for each country compared to before?

i. What is the equilibrium relative price of apples?From the graph, the equilibrium relative price…

Answered: Suppose Home has 200 units of labor. It…

Economics Today and Tomorrow, Student Edition

1st Edition

ISBN:9780078747663

Author:McGraw-Hill

Publisher:McGraw-Hill

Chapter18: Trading With Other Nations

Section: Chapter Questions

Problem 8AA

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C O O O Suppose that Canada can make 45 kilograms of cheese or 60 bottles of wine with one year's worth of labour. France can make 30 kilograms of cheese or 54 bottles of wine with one year's worth of labour. What can we conclude from these numbers? a. Canada has a comparative advantage in the production of wine. b. Canada has an absolute advantage in the production of cheese. c. France has an absolute advantage in the production of wine. d. France has a comparative advantage in the production of cheese.
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not use ai please
Please choose the answer from the following words and fill in the blanks, each word is not limited to once A. Bananas B. Apples C. 2 D. 0.5
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Home has 1200 units of labor available. It can produce two goods, apples and bananas. The unit labor requirement in apple production is 3, while in bananas 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 bananas production it is 1. e) Show that how both Home and Foreign countries gain from trade. use PPF graph.
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I'm confused on how to calculate the gains from trade. I don't know what to do.
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