Consider an economy with two countries and two goods. Unit labor requirement for each product is...

 

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Consider an economy with two countries and two goods. Unit labor requirement for each product is given in the table below. Domestic Foreign Apple 1 4 Orange 2 1 Available Labor 1,000 7,000 Suppose that Domestic and Foreign can trade apple in exchange for orange at 1-to-1 ratio. Assume that consumers also prefer consuming at one apple for every orange. Calculate the increase in consumption of orange in Foreign after trade opens. Report your answer in 3-decimal precision. Ex: If your answer is 666.54634654674, then 666.546. Consider an economy with two countries and two goods. Unit labor requirement for each product is given in the table below. Domestic Foreign Apple 1 4 Orange 2 1 Available Labor 1,000 7,000 Suppose that Domestic and Foreign can trade apple in exchange for orange at 1-to-1 ratio. Assume that consumers also prefer consuming at one apple for every orange. Calculate the increase in consumption of orange in Foreign after trade opens. Report your answer in 3-decimal precision. Ex: If your answer is 666.54634654674, then 666.546.

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1The increase in consumption of orange in Foreign after trade opens is 3333 2The reason for the incr... View the full answer