Suppose that each worker in the Home country can produce three cars or two TVs. Assume that Home has four workers. Suppose that each worker in the Foreign country can produce two cars or three TVs. Assume that Foreign also has four workers. a) '0) C) d) e) f) g) 11) Graph the production possibilities frontier for Home and Foreign. What is the no-trade relative price of cars at Home and at Foreign? Determine the pattern of comparative advantage between countries. Suppose that in the absence of trade, Home consumes nine cars and two TVs, while Foreign consumes two cars and nine TVs. Add the indifference curve for each country to determine no- trade equilibrium production and consumption in each country. Now suppose the world relative price of cars is 1. Graph the new world price line to determine the trade equilibrium. Label the exports and imports for each country. How does the amount of Home exports compare with Foreign imports. Does each country gain from trade? Explain Why or why not