{c} How does the equilibrium production and consumption change with trade? Show on the graph how openness to trade affects consumers' utility. Again, put quantity of production in clothing Q: on the xaxis and quantity of production in food QF on the y-axis. {d} How does the change in production affect factor allocations? {e} Examine the changes in real returns for the workers in each sector (11%, PT.) the real returns for the capital owners in the clothing sector (41,\") and the real PC 1 a. rental rate of land in the food sector ( IfC, Pi) What are the key assumptions on the production technology that drive the change' m each result? Policy makers are considering the imposition of a 1D% tariff on food. This tariff would raise the price of food in the country by 10% and would not affect the price of clothing. {f} What is the effect of this tariff on the world relative price? {g} Who benets from the tariff policy compared to free trade? Again examine the changes in real returns for the workers in each sector (I? , P 1,) the real returns C J- for the capital owners in the clothing sector ( PLC , PT i) and the real rental rate of land in the food sector (, FLIP). Let us consider again, Cruztopia under autarky and further assume that the economy acquires additional land. {h} Show on a graph how the autarky equilibrium production and consumption would change compared to part (b). Hint: There is no change in the catering; price? {i} Examine the changes in real returns for the workers in each sector ("1:1 ff) the real returns for the capital owners in the clothing sector ( a) and the real PC 1' P,- rental rate of land 1n the food sector (Pi, Pi) . C J