Question 4 (20Points) Consider the following data in a Heckscher-Ohlin model with two goods (wine and cheese) and two factors (capital and labor) Cheese (I tonne) Wine (1 kilo litres) Total Endowment Capital (Hours) 15 10 2,500 hours Labor (Hours) 15 20 5,500 hours Assuming that the resource constrained can be represented with the following general equations: axcQc + axwQw = K aLcQc + aLwQw = _ where: axc = unit capital requirement in cheese anw = unit capital requirement in wine are = unit labor requirement in cheese app = unit labor requirement in wine I = Labor endowment K = Capital endowment a) Solve for the equilibrium output levels of wine and cheese [4 Points]. b) Suppose the labor endowment falls by 700 hours from 5,500 hours to 4800 hours. Solve for the new equilibrium output levels of wine and cheese [4 Points]- c) Suppose the labor endowment increases to 6000 hours. Solve for the new equilibrium output levels of wine and cheese [4 Points]. d) Identify which good is labor intensive and which is capital intensive [4 Points]