i. Equilibriouto Labeled ii Equilib paideveabeledi b. Assumethat there is anincrease inforeignpreferences for products fromMRitchieland Onyour graphinpart (a), show theeffect of highexpootthequilibrithehortnabelthnew equilibriumatip.tandpricelevel Y2andPL2, respectively. c Baseddyouaswepar(b), whatthempanhigher exports anred wages intheshort run? Explain d As aresult of theincreaseinexports, expart-orientedind stries in MRitchied andincrease expand tures annewcontainer ships and equipment i. What component of aggregate danandwill change? ii Wet will happentothecapital stock of MRitchland