Exchange in an Open Economy. Now we will look at trade patterns between two countries, say France and Germany. Agents in both countries have preferences over two goods - say cars and wine - described by: U(Xc, Tw) = Ce Tu (2) where x (x ) denotes consumption of cars (wine). Let EG, EF denote the endowments of Germany and France, respectively. (You can interpret these endowments as production levels at a given point in time, assuming they are fixed). EG GE G) = (10,10) EF = (65.EW) = (10,30) which means that Germany and France are endowed with the same number of cars, but France is endowed with more wine than Germany. (a) Compute the autarky relative pricesPe /Pw: Pe /Pw in the two countries.? (b) Draw relative demand for both countries on the plane (x:/XP:/pw).3 Indicate the endowment points and autarky prices. (c) Compute the free-trade world relative price?c /Pu, and indicate it in the same graph