Consider the Ricardian model of trade. Two countries, Greece and Macedonia, produce two goods, Comedy (C) and Drama (D), using only labor (writers). The marginal products of labor in Comedy and in Drama (both measured in units) are: Greece: MP LGC =3MP LGD =2 Macedonia: MP LMC =6MP LMD =2 There are 70 workers in Greece and 130 workers in Macedonia.

Q= in a graph draw the qualitative shape of the export supply of Drama and the import demand for Drama as a function of the relative price of Drama and indicate (again qualitatively) where the international trade equilibrium lies.