Consider the two-factor production function, Y = ZKL-a, for country A. Country A is a large economy that can trade with the rest world and its supply and demand influence the prices in the world market. It produces agricultural and electronic products. Let Z = 1 for both islands and industries and capital's share is much larger in electronic products' production (a a, where the subscripts denote the product). Country A has abundant capital and little labor, so it exports electronic products and imports agricultural products. (20 points) a) The world price for electronic products has increased a lot recently. Show the change in country A's production before and after this shock in a simple diagram. Assume the new world price already reflects the change in country A's production. (Hint: first draw Island A's production possibilities frontier.) (5 points) b) With the shock above, what will happen to country A's terms of trade? (5 points) c) If instead, Island A changes its immigration policy in favor of new immigrants and a lot of immigrants come to Island A. Hence, country A has abundant labor now. Assume country A still exports electronic products and imports agricultural products, what will happen to country A's terms of trade? (5 points) d) Draw the new production possibilities frontier for country A with comparison to the former one. (5 points)