1. (a) Two economies A and B have labour forces of 500 and 1500, respectively. The tastes and preferences of these economies, over the two goods X and Y, are same and are given by the utility function U(X,Y)=X0.4y0.6, In Country A, one unit of labour can produce 3 units of Good X: while in Country B, it can produce 5 units. Similarly, one unit of labour can produce 4 units of Good Y in Country A, whereas it can produce 8 units in Country B. Given this information, answer the following questions: (i) What is the opportunity cost of producing X in terms of Y in Country A and B? (ii) Under free trade, what is the equilibrium relative price and relative quantity? Illustrate the equilibrium using RD-RS diagram. 3 (ii) Discuss whether the economies would go for complete specialization? (10)