preferences in both countries. Assume that the countries are closed to international trade. a} h) d} 11} Construct the PPF for both countries and put them in the same graph. Show in the graph the quantity ofboth cloth and tablets that are produced by each comrtry in equilibrium= if the countries are not trading. Compute these quantities algebraically. TWhich country produces more cloth relative to tablets? Indicate how this feature relates to the country's relative factor endowments. Compute the quantities of labor and capital employed in each country in the production of each of the goods at the output levels in a}. Indicate the range of prices of cloth relative to tablets at which the Home country will produce both goods. Which good would be produced it the relative price was outside of this range? In which country will the price of cloth relative to tablets be higher? Explain. Assume that both counties open to trade with each other. Explain how the price of cloth relative to trade will change in each country aer opening to trade. According to the HeckscherClhlin theorem, E these two countries opened to trade= which country would export which good? Explain. Give intuition about who will be better off and who will be worse off in each country after opening to trade. Explain