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Question: home foreigrn marginalproducts cheese wine labor force 100 200 g...

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Home Foreigrn MarginalProducts Cheese Wine Labor Force 100 200 g Suppose that the home country consumes 240 units of cheese before trade and 240 units of cheese after trade Calculate the amount of wine the home country will consume both before and after trade h. Calculate home countrys exports and imports (list the good it is exporting and the amount, and the good that it is importing and the amount) . i. Draw the world supply curve for wine. Label your axes and give numerical values on both axes j. Suppose the relative price of wine increases from 1 to 1.25. Draw the home country s new consumption possibilities frontier. What effect will this have on home country s utility (increase, decrease or no change)?

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