P 61: Ex. 1-Case 2 only Goods Country A Country B A's relative effic.=B's hour/A's hour S 10 hrs #5 hrs 5/10 T *4 5 5/4 (greatest efficiency) Determine: the following: (a) The pre-trade relative prices for S and T a. (b) Direction of comparative advantage (determine in what goods the countries have a comparative advantage). (c) Limits to the relative wage WA/E. WB where E is the exchange rateP 61: Ex 6. Place good S on the horizontal axis. The fact that the autarky Po/Pr increased from 5/4 to the ITOTs = 2 gives an indication of where the comparative advantage lies. Exporting countries experience an increase in relative price after they open up for free trade, while importing countries face a decrease in that relative price Please use this information from Exercise 5 when you solve this exercise. Use the information in Ex. Sto plus the following additional information to graph Country A's trade triangle: World's relative price - 2; and Country A's imports = 2,000. What's Country A's export