Spring 2024 Gary Lyn Econ 455 Problem Set 2 Due March 29, 2024 11:59PM (to be uploaded to Canvas link) I8 (Specific Factor Model, Chapter 3) In the \"simple\" version of the specific factor model, there are two sectors (goods), one factor (labor) that is perfectly mobile between the two sectors, and one fixed or specific factor in each sector. To be concrete, suppose the two goods are food and clothing, the specific factor in food is \"land\" represented by \"T\c) Now assume there are two countries, Jamaica and Barbados, that are almost identical. They have the same tastes (the same demand curves), the same technology, and the same amount of land and labor; however, Jamaica has more capital than Barbados. i Based upon your results from part (b), what predictions would you make concerning the autarky (no trade) relative price of food in Barbados as compared to Jamaica? (a verbal answer suffices) ii Iftrade is allowed between the two countries, what will the pattern of trade be and how willthe relative price of clothing change in each country? iii Finally, discuss how trade affects the real return to each factor (capital, land and labor) in each country. Does each country as a whole potentially gain from trade? Does each interest group (factor owner) in each country also gain? Be as precise as possible (a verbal answer suffices)