iii Using your result in part ii, given output prices, show how an increase in the amount of capital iv (K) available for production aects: (])the quantity supplied of each good; (2)the real return to capital; (3)the real return to land; and (4)the real wage rate. Given output prices, show how an increase in food productivity (\" (9 \") affects the supply (output) of each good and the real return to each input. Given output prices, what happens to the supply of each good, and the real return to each factor, if productivity in both sectors (i.e., it and 6') doubles? c} Now assume there are two countries, Mexico and Brazil, that are almost identical. They have the same tastes (the same demand curves), the same technology, and the same amount of land and labor; however, Mexico has more capital than Brazil. i ii iii Based upon your results from part (b), what predictions would you make concerning the autarky [no trade} relative price of food in Brazil as compared to Mexico? {a verbal answer sufces) If trade is allowed between the two countries, what will the pattern of trade be and how will the relative price of clothing change in each country? Finally, discuss how trade affects the real return to each factor (capital, land and labor) in each country. Does each country as a whole potentim'lv gain from trade? Does each interest group (factor owner) in each country also gain? Be as precise as possible (a verbal answer suices)