7. Suppose a smail open country can produce two goods, apples and chairs. Labor (I) is used for both goods. while land (T) is the specic factor used in apple production and capital (K) is the specic factor used for chair production. Output of apples' is denoted by Q\" and output of chairs' is denoted by Q: The total amount of labor available in the country is xed at L. The amounts of cap ital and land are xed as well The production functions are given by 06 (Es/ Tand Qc- (_J_. (a) Show that an increase in the world relative price of chairs leads to a shift of labor from apple to chair production. (b) Show that an increase of capital leads to a shift of labor away from apple into chair production