Instructions We have two states: Apple State and Banana State. There are three homogeneous goods, one factor input (labor), and unit labor requirements are given in the following table. We assume that wage rate in Apple State is $3 and that in Banana State is $4. Two states agree to trade goods freely. Answer the following two questions Units of labor required per unit of output Apple State Banana State Textile 4 1 Fish 3 2 Soybean 2 3 QUESTION 1 Under free trade without any trade friction and transportation cost, Apple State will produce Soybean, and Banana State will produce Textile and Fish. Is this statement true? True False QUESTION 2 Now, we assume that it costs $2 per unit to transport any goods between these two states. Please explain why Fish will not be traded