. Suppose that goods are produced using two factors of production: land (T) and capital (K) The production of Agricultural products (A) uses a higher % ratio than the production of Calculators (0). Prices of output goods are PA and PC, prices of inputs are 1) for the rental rate for land and 'r for the rental rate of capital. (a) Show the relation between relative goods prices, relative factor prices and relative factor demands (two-quadrant diagram). (b) The resource endowments of the countries, Home and Foreign, are described in the following table: Land (hectares) Capital ('35 million) Home 4000 1500 Foreign 3000 1000 What prediction would be made regarding the pattern of trade that will arise (What good does Home export? etc.) (c) Suppose that there is a difference in the productivity of land in the Home and Foreign countries. 1 hectare of land in Foreign is equivalent to A hectare(s) of land at Home, with A > 0. If A > 1 what does this say about the productivity of land at Home compared with Foreign? If 0