Ang ! First we have to calculate value of marginal produ- clivity of labowl ( VMPL ) using : VMP, = MP X Price Now since police of both goods equal to 1 VMP = MPL So , wee have to draw just given data on graph .Suppose that international trade causes the price of cloth to double (from 1 to 2), while the price of food remains the same. Show the effect that this will have on your graph in part a. Use your graph to answer the remaining questions. Write your answers in the table at the end of the problem. d. What is the new equilibrium wage rate in dollar terms (w)? How much labor is hired by the food industry and how much by the cloth industry? e. What has happened to the purchasing power of the wage in terms of cloth (i.e what has happened to w/Pc)? What has happened to the purchasing power of the wage in terms of food (i.e what has happened to w/PF)? f . What is the amount of income to landowners now, both in dollar terms, and in the amount of cloth and food it can buy (income/Pc and income / PF) ? g . What has happened to the income to capital owners, both in dollar terms, and in the amount of cloth and food it can buy