Q1. Suppose there are five countries, A, B, C, D, and E, producing only two goods,...

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Q1. Suppose there are five countries, A, B, C, D, and E, producing only two goods, X and Y, using only one factor of production, Labour. The unit labour requirements (ULR) for the two products, for the five countries are given below: Countries ULR for X ULR for Y Labour Endowment A 2 10 3600 B 16 12 3600 C 8 24 7200 D 12 24 7200 E 6 15 10800 Suppose that the relative demand for the two products is assumed to be same for all the countries and is given as follows. 1. Derive the relative supply curve and diagrammatically represent the relative supply and demand curves. 2. Discuss the pattern of specialization under free trade. (Qx/QY)-3-(Px/PY) 6+1 1 Q1. Suppose there are five countries, A, B, C, D, and E, producing only two goods, X and Y, using only one factor of production, Labour. The unit labour requirements (ULR) for the two products, for the five countries are given below: Countries ULR for X ULR for Y Labour Endowment A 2 10 3600 B 16 12 3600 C 8 24 7200 D 12 24 7200 E 6 15 10800 Suppose that the relative demand for the two products is assumed to be same for all the countries and is given as follows. 1. Derive the relative supply curve and diagrammatically represent the relative supply and demand curves. 2. Discuss the pattern of specialization under free trade. (Qx/QY)-3-(Px/PY) 6+1 1