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Please I need answer for This question at the moment and it is very important and I need solution for this issue with all the
Please I need answer for This question at the moment and it is very important and I need solution for this issue with all the details .please you can write the answer typing and not write by hand, so that I can read and understand your answer clearly.I need step by step solution to the following this question asap .I have limited time so please do it quickly with detailed explanation.thanks in advance/Ha.
1. This question will ask you to analyse economic effects of the Corona virus by applying the Ricardian model. Assume that there are two production goods: tomatoes and paper. In Sweden, it takes 10 hours to produce a kilo of paper, and 3 hours to produce a kilo of tomatoes. Under free trade before the Corona virus occurred, the world relative price of paper in terms of tomatoes was 10.
a) Under free trade, what good or goods does Sweden produce? What does it export? Explain your answer.
b) Under free trade, draw the production possibility frontier (PPF) and consumption possibility frontier (CPF). Explain your answer.
c) Under free trade, show how much of each good a worker can consume. Explain your answer.
d) Now, assume that the effect of the Corona virus is that Sweden can no longer trade with the rest of the world. What is the consumption possibility frontier (CPF) of Sweden in this case? Explain your answer.
e) Under autarky, how much of each good can a worker consume? Explain your answer. (5 points)
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