8. Consider the Standard Trade Model. Suppose the relative price of cloth is on the vertical axis and the relative quantity of cloth is on the horizontal axis. The relative supply of cloth curve upward sloping because the law of diminishing returns prevails in this model and increased production of cloth requires a higher relative price of cloth. b. upward sloping because as the relative price of cloth increases, cloth consumption decreases and an exportable surplus of cloth is created. a upward sloping because as the relative price of cloth increases, the production possibilites frontier shifts our in the direction of cloth, leading to an increase in the relative quantity of cloth. d. downward sloping because constant returns to scale prevails in this model and increased production of cloth requires lower relative price of cloth