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Please explain part b Consider the Heckscher-Dhlin model with two tvpes ot input: skilled labor and unskilled labor. Suppose that the Home country is abundant

Please explain part b

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Consider the Heckscher-Dhlin model with two tvpes ot input: skilled labor and unskilled labor. Suppose that the Home country is abundant in skilled labor. Suppose that the Home elects a government that Is against trade and increases barriers to trade, i-e. becomes protectionist. a) Does it lead to an increase or decrease of production in skill-intensive industries? Why? Illustrate on the PPF what happens to production and relative prices. b} Describe what happens to the relative demand for skilled workers in each industrv, and what happens to the relative demand for skilled workers on aggregate. :1 Suppose that the majoritv of voters are unskilled workers. Does the majority of voters benet from protectionism? Explain

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