Specic factors model: Suppose there are two countries, called WM and Man. Each country can produce x using unskilled labor (U) and capital (K); and y using skilled labor (S) and capital (K). While capital (K) can be used in either sector, unskilled workers are specic to sector x, and skilled workers are specic to sector y. The two countries are exactly the same in every way except the supply of unskilled workers is higher in Elm than in angleton. a) Draw a diagram that shows the demand for capital in autarky, with the rental rate of capital (r) on yaxis and the allocation of capital between the two sectors in each country on the xaxis. Please carefully label all axes, origins and equations and name of the curves. Briey explain. b) Which country has the comparative advantage in producing y? Explain why. c) Now assume the two countries start trading. i) What happens to the relative price of y in F lorean? Briey explain. ii) What happens to the allocation of capital in F lorean? Please show your answer graphically, carefully label all axes and origins of your graph, and explain in words and! or equations