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Economics A Numerical Example (1 of5) (Participation) Unit labor requirements Cheese Wine Home aLc = 1 hour/lb alw = 2 hours/gallon Foreign alc= 6 hours/lb alw= 3 hours/gallon . What are home and foreign country's opportunity costs of cheese? . Labor supply in Home = 1,000 hours of labor . Labor supply in Foreign = 3,000 hours of labor . Construct the world relative supply (RS) curve. . Suppose the world relative demand (RD) takes the following form: Demand for cheese / demand for wine = (price of wine / price of cheese) + 1. or the inverse of the relative price of cheese plus 1