Assume there are two countries (home and foreign) and two commodities (cloth and food). Assume home country has comparative advantage in cloth production and foreign country has comparative advantage in food production. Assume these countries currently engage in free trade. Using the standard trade model, answer the following questions.

Assume only home country experiences biased growth in cloth production. Graphically show that the welfare of home country mayriseafter growth. In graph, clearly indicate what is measured on the x-axis and y-axis. In graph, also clearly indicate iso-value lines, production possibility frontiers, and indifferences curves before and after growth.