1. Show that when D6 = 11 then cf:V = nee: = 1 111.1111:V =11=I = 1. PT = 1111.11\" = 1/21. H1111: Follow these steps: Use the fact that yil': CN to conclude that 1193:1121. Find a similar expression for e: by assuming that all tradeables are consumed locally. Take the ratio of def/be: and use e: + 12:"- = 1 to nd the labor allocation. 11391310? Plug back into the production functions to nd yf, yf. Calculate PT P\" using the expressions for C- 'V, CT. C C \"S21 F\" Calculate wages 11131.11}?! by equating the wage to the marginal product of labor. 2. Now consider a case where there are differences in demand across counties: Dc = 1 (1.: where D [l are productivity parameters. Consumers County (3 has Dc units of expenditures consuming Cg" of the nontradeable good and C? of the tradeable one. Consumers split these expenditures between tradeable and nontradeable goods in the following way: RFC?" = (LDC, PTO: = {l (1)13: where (1