Carefully read through each question and provide your answers. Make sure that you show your own argument and work. 1. [Specic Factors Model) Cruztopia is a small open economy}:r which produces clothing and food (clothing with capital {K} and labor {Lg}; food with land (T) and labor [159)]. Capital and land are xed factors while labor can move between sectors {LC+ LF 2 L). The production technology.r in each sector demonstrates constant returns to scale with diminishing returns of marginal product of each factor and factor complementarity. Consumers in this economy,r exhibit homothetic preferences. [a] Characterize an autark},r equilibrium for Crustopia. (b) Graphically represent the autark}r equilibrium with quantit}r of production in clothing QC on the xa'xis and qux'nrtdt}r of production in food (2;: on the yaxis. , T Crustopia opens up to free trade and observes a relative world price (frg) . Let us further assume that the relative world price is higher than in the autarky relative price, T A E '52