. Consider a Ricardian world with two countries (Home and Foreign) and 5 (A, B, . . . , E) The unit labour requirements for each good are listed in the following table: 0111?: a'Lz A 1 10 B 5 40 C 3 10 D 6 10 E 12 9 (a) Sketch the shape of the Relative Demand for Labour. Explain the shape of this function. In your gure you should identify values along the vertical axis associ- ated with any horizontal segments. (b) If RS 2 RD at g = 3, what goods are produced at home and what goods are produced in the foreign market? What is the pattern of trade? (Identify exports and imports of each country). T (c) When the relative wage is % = 3, what is the relative price of A to E , (Iig) when there is trade. Conrm that the relative price of these two goods sits between the autarky relative prices in home and foreign