This exercise applies the basic Ricardian model of one factor and two goods. The table below contains the output per hour worked in Foreign and Home for each of two goods. Chocolate Olive Oil Home qc = 6 pounds per hour do = 5 gallons per hour Foreign q; = 2 pounds per hour a; = 6 gallons per hour where: qc = units of chocolate produced in Home by one hour of labor; qo = units of olive oil produced in Home by one hour of labor; q; = units of chocolate produced in Foreign by one hour of labor; qs = units of olive oil produced in Foreign by one hour of labor; pa, = the world price of chocolate (the trade price); Pev = the world price of olive oil (the trade price). Both Home and Foreign will gain from trade if the world price of chocolate (PSV) lies between two limits as follows: QaIIOHS c gallons . 3 [ pound] > PW > 0.83 pound .(Round each response to two dectmal places.) The closer the world price of chocolate is to its upper bound, the more '7 benets from trade