1) 20 points. Specic Factors Model The United States and Ireland can produce barley and software. Labor, L, is required to produce both goods; capital, K , is used to make software and land, T , is used to make barley. a. Classify each factor of production as either a mobile or xed factor. (2 pts) b. Draw the production possibility frontier for Ireland. (3 pts) c. Assume that Ireland has relatively more capital than land, while the US. has relatively more land than capital. After the two countries open to trade, how does the price ratio change in Ireland? How does it change in the U.S.? (5 pts) d. On the graph you drew in part b., sketch a new line to represent the new world prices W W pb \"'5 What happens to the quantity of barley produced in Ireland? That happens to the quantity of software produced in Ireland? What about in the United States? (10 pts) e. In which sector (barley or software) does labor demand increase in Ireland? What happens to the real wage in terms of software, in Ireland? In terms of barley, in Ireland? (5 pts) f. What happens to the returns to capital and land in each country? Explain the mechanism (5 pts)