Problem 1 Assume that South American countries listed in the table below produce only coffee and ba- nanas. In the table below we have information about total labour endowments and unit labour requirements for production of each good. Labour Country Unit labour requirements force Coffee Bananas Peru 40 2 Columbia 60 Brazil 110 4 Panama 60 Uruguay 50 (a) Using information from the table draw the world relative supply curve of bananas. Using the same information draw the world production possibility frontier. (b) Which countries will specialize in production of coffee and which in production of ba- nanas, when the world relative price of bananas is 0.35? (c) How will the world production structure change if the relative price of bananas were 0.3125