homeforeign

textiles(t) 3 6

chocolates(c)3 2

suppose now that immigrants arrive to foreign and the total number of workers is now 120. suppose further that foreign continues to trade freely with home and that world relative demand does not change.

1. draw the new world relative supply, the old one and the world relative demand . what happens to free trade equilibrium relative prices Pt/Pc?
2. do you think that this change will benefit or harm the home country ? justify