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Consider the Ricardian model of trade. Suppose there are two countries, Home and Foreign, and that output per worker in the two countries is as

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Consider the Ricardian model of trade. Suppose there are two countries, Home and Foreign, and that output per worker in the two countries is as follows: Shoese Computers Homes Foreign Each country has 4 workers. Suppose that consumers in each country always choose to consume the same amount of shoes as of computers. ~ Graph and describe the no-trade equilibrium for the two countries. Graph the free trade equilibrium for the two countries. Explain the trade pattern that arises. What is the free trade price ratio between the two goods? ~

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