Completed quickly and followed instructions given. Grammar, spelling, etc. was all good as well. Thank you so much! Will hire in the future.
Question 1. This question helps you review the Specific-factors model. 24 points, 2 each, except (3). Due back Feb. 15.
There are two countries, Home and Foreign, and they produce cars and bananas. Cars are produced using capital and labor, and bananas produced using land and labor. Under the closed-economy equilibrium, Pcar/Pbanana > Pcar*/Pbanana*; i.e. the relative price of cars is lower in Foreign than in Home.
(1). Draw a picture to show the Home country’s closed-economy equilibrium.
(2). Show the Home country’s free trade equilibrium in your picture above.
For the questions below, assume that as the Home country moves from closed economy to free trade, the price of cars drops by 10% and the price of bananas remains unchanged.
(3). Draw a picture to illustrate the equilibrium in the Home country’s labor market. Then show how w, Lcars and Lbananas change as the Home country goes from closed economy to free trade. (4 points)
Show more
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.
Read moreEach paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.
Read moreThanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.
Read moreYour email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.
Read moreBy sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.
Read more