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3. Suppose there are 2 countries, Domestic and Foreign, and 2 goods are produced. Both goods are produced in both countries. In Domestic1Px = $32 = 1"w + 2"r and FY = $64 = 3"w + 2*r In Foreign: Px = $26 = 1"'w + 2*r and PY = $70 = 3'w + 2"r. a. (8 pt.) What are equilibrium, autarkic wages (w) and rental rates (I) in each country? {mm'm : b. (2 pts.) Based on output prices, when the countries open to trade which country will export which good? Circle the correct answer). Good X is exported by: Domestic Foreign Good Y is exported by: Domestic Foreign c. (l + 3) Which country has relatively more Labor (Circle the correct answer)? How is this determined? Explain, including the relevant numerical results. Domestic Foreign Start your answer here I d. (l + 3) Which good is more Capital Intensive (Circle the correct answer)? How is this determined? Explain, including the relevant numerical results. X Y Start your answer here b e. (8 pts.) When the countries open to trade the output prices will equalize so that Px = $60 in both countries and PY = $18 in both countries. What are equilibrium wages (w) and rental rates (r) in each country? f. (8 pts.) Assuming both countries use the same Currency, use the reSults above to explain the winners and losers from trade in both countries. Start your answer here b