Modern communications technologyr is making it possible to perform many servicese.g., reading Xrays or even doing legal researchfrom remote locations. How does this affect the potential gains from trade? With modem communications, gains from trade are D A. decreasing as domestic industries are replaced by foreign producers. O B. increasing as the share oftraded goods decreases. O C. decreasing as the potential benets from specialization subside. D D. increasing as opportunities to benet from comparative advantage increase. This exercise applies the basic Rioardien model of one factor and two goods. The table below contains the unit labor requirements in Home for each oftwo goods. Sausage Glue Home aLS = 8 hours per pound aLG = 5 hours per gallon where: 3L5 = number of labor hours needed to produce a unit of sausage in Home; aLG = number of labor hours needed to produce a unit of glue in Home; P5 = the price per pound of sausage; PG the price per gallon of glue. If the price per pound of sausage (PE) is $12, the hourly wage rate in the sausage sector of Home's economy will be 0 A. $12. 0 B. $0.5. O c. 52. Q 0. $72