1 Home has 2,400 units of labor available. It can produce two goods, apples and bananas. The unit labor requirement in apple production is 3, while in banana production it is 2. There is now also another country, Foreign, with a labor force of 800. Foreign's unit labor requirement in apple production is 5, while in banana production it is 1.

a) Construct the world relative supply curve. This time, however, let's use the relative price of bananas in terms of apples in the y-axis (Pb/Pa), and the relative quantity of bananas in the x-axis (Qb + Q b)/(Qa + Q a).

b) Suppose that the equilibrium relative price of bananas in terms of apples is equal to 1/2. Describe the patterns of trade