Consider the Specific Factors Model for a small open economy that produces only agricultural goods and manufacturing goods. Assuming that the economy initially exports agricultural goods,

Use the PPF diagram and the budget line to analyze the effects of the fall in the price of manufacturing goods on the level of outputs for both sectors. Can you conclude how the level of consumption and export of agricultural goods can get affected as a result of this change in the international trade market? (assume no information on the consumer preferences and substitution effects)