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Please help me to understand to answer these questions, thank you Use the following information to answer the homework: Home Foreign L 25 IUD MPL

Please help me to understand to answer these questions, thank you

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Use the following information to answer the homework: Home Foreign L 25 IUD MPL Wheat 3 2 Cloth 4 1 Assume no-trade in problems ah a. What is the relative price of wheat {Puchl in the home country? In the foreign country? b. What is the real wage in terms of wheat in the home country? In terms of cloth in the home country? c. What is the real wage in terms of wheat in the foreign country? In terms of cloth in the foreign country? d. Suppose the price of wheat is $5. What is the value of the nominal wage {W} in the home country? e. Which country has an absolute advantage in cloth? Which country has an absolute advantage in wheat? f. Which country has a comparative advantage in wheat? In cloth? g. Sketch home's production possibilities frontier, showing wheat on the horizontal axis and cloth on the vertical axis. Show the values of the horizontal and vertical intercepts. h. Suppose the home country consumes 40 units of cloth. What is its wheat consumption? Assume trade in problems i t. i. After trade, what is the highest possible value of Puch? Lowest possible value? Assume that Ehch equals .3 after trade and that the home country consumes AD units of cloth. j. What is home's production of wheat after trade? What is home's production of cloth? k. Sketch the budget line of the home country after trade

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