4. Home has 800 units of labor and 320 units of capital. The supply of labor and capital are fixed and the economy is always at full employment of labor and capital. At the current equilibrium, the computer industry uses 320 units of labor and 240 units of capital and the shoe industry uses 480 units of labor and 80 units of capital. The price of shoes relative to computers falls by 10%. Assume this causes a 20% decline in the demand for capital and a 15% decline in the demand for labor in the shoe industry. After the relative price decline, answer the following: (15 pts.) a. How many units of labor and capital are demanded in the shoe industry after the relative price change? b. How many units of labor and capital are demanded by the computer industry after the relative price change? c. What is the ratio of Lc/Kc before and after the relative price change? What is the percentage increase or decrease versus prior to the relative price change? d. What is the ratio of Ls/Ks before and after the relative price change? What is the percentage increase or decrease versus prior to the relative price change? e. Are the answers you obtained in c. and d. consistent with the trade effects on factor prices as predicted by the Heckscher-Ohlin model? What would the Stolper-Samuelson theorem say regarding the real rental rate on capital and the real wage rate after the relative price change. Give your reasoning