One Sector--Factor Mobility] Consider the case of a German-style unification from the perspective of factor mobility. Under the old regime no factors (labor and capital) are allowed to flow between East and West or visa versa. Unification allows such flows. Immediately before unification, i.e. immediately before factors begin to flow, the West has $5 trillion of capital and 20 million workers. The East has $1 trillion of capital and 10 million workers. Each region produces the same single output using capital and labor. Assume labor and capital are homogeneous in quality.

d. In equilibrium what will be the capital-labor ratio in the West? What will be the capital-labor ratio in the East?

e. In equilibrium, which region, if either, will have higher wages? Which region, if either, will have higher returns on capital? Which region will have grown in population? Which will have declined?

Explanation and conclusion please