Suppose that each worker in Finland can produce 4 phones or 2 cars. Finland has ten workers. Each worker in Sweden can produce 2 phones or 4 cars. Assume that Sweden has 10 workers. Now suppose the world relative price of phones is Pphone/Pcar = 1.

Graph the new world price line for each country in the figures in Problem 3, and add a new indifference curve (U2) for each country in the trade equilibrium