Ricardo. Suppose there are two countries, Home and Foreign, and each country produces two goods, x and y. Labor is the only factor input. Suppose Home as 250 million workers and Foreign has 200 million workers. The following table shows the amount of labor inputs needed to make one unit of output of each of the two commodities in each of the two countries. a.) Draw a graph of the production possibility frontier (PPF) for Home and separately for Foreign. Which country has the comparative advantage in producing x? Which country has the comparative advantage in producing y? b.) Assuming these countries trade, sketch the relative world supply ofx. Please label the vertical and horizontal axes, intercepts, and other important levels on the axes QHQJ' = 4 2 ,please calculate the world equilibrium QJH'Qy P3? c.) If the world relative demand curve is: P relative price ( x PJ' draw the relative demand on that; or redo the graph here and add the relative demand.) (:1) Show each country's PPF and CPF and demonstrate graphically the gains from trade (if any) for each country. e) Suppose Home opens up to immigration, and Home's labor supply increases to 500 million. Under this new scenario, sketch new relative world supply and demand of x, calculate new world equilibrium Px )w' Using graph above, plot the relative demand. (You can use the graph above and W relative price ( ) , and show PPF and CPF for each country. Explain how this will affect the pattern of P3? trade and the gains from trade for each country