question 21

Question 21 (5 points) Imagine two countries (D and F) in a Ricardian model that can produce two goods (X and Y) using labour hours (L) at their unit requirements (uiD, uiF) for each good (i). Country D has 180 L available, with an ability to produce 1 X using 18 L (uXD = 18) and 1 Y using 3 L (uYD = 3). Country F has 240 L available, with an ability to produce 1 X using 16 L (uXF = 16) and 1 Y using 2 L (uYF = 2). (a) Which country should import good Y? Why? (b) Describe the relative supply of Y (RSY) curve and what each country produces across all possible values of the relative price of Y (RPY). (c) Give a relative price of Y and relative quantity of Y such that only one country is producing X, and only one country is producing Y. I: a 09 v Paragraph v B I U v ... Add a File Record Audio Record Video