Suppose all countries produce two goods, Coke and haircuts. Coke is traded internationally whereas haircuts are not. The following table contains prices in each country Can of Coke (traded) US USD 2 USD 20 Sri Lanka LKR 1000 LKR 2000 Haircut (non-traded) 1) Suppose the average person in the US consumes 200 cans of Coke and 15 haircuts, and the average person in Sri Lanka consumes 100 cans of Coke and 40 haircuts. Which country has a higher GDP per capita, evaluated using market exchange rates? 2) Redo the Sri Lankan GDP per capita adjusted for Purchasing Power Parity (Use a consumption basket contains 100 cans of Coke and 10 haircuts to compute the PPP exchange rate) What happens to the difference in the two countries' GDP per capita when the PPP exchange rate is used?