Question: REALLY could use the help with this econ practice question. Thanks! 2. [20 points] For this question, use the standard neoclassical model of trade. Suppose

REALLY could use the help with this econ practice question. Thanks!REALLY could use the help with this econ practice question. Thanks! 2.

2. [20 points] For this question, use the standard neoclassical model of trade. Suppose the world consists of two regions: North and South. There are two goods: agriculture (labeled as 1) and manufacturing (labeled as 2). Initially, North exports manufacturing and imports agriculture. Use a diagram that has quantity of good 2 on the y-axis and of good 1 on the x-axis from the perspective of South. The diagram must incorporate the production possibility frontier of South, as well as relevant iso-value lines and indifference curves. Suppose terms-of-trade of South increases. Use your diagram to show how welfare in South changes. 2. [20 points] For this question, use the standard neoclassical model of trade. Suppose the world consists of two regions: North and South. There are two goods: agriculture (labeled as 1) and manufacturing (labeled as 2). Initially, North exports manufacturing and imports agriculture. Use a diagram that has quantity of good 2 on the y-axis and of good 1 on the x-axis from the perspective of South. The diagram must incorporate the production possibility frontier of South, as well as relevant iso-value lines and indifference curves. Suppose terms-of-trade of South increases. Use your diagram to show how welfare in South changes

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