Suppose the world consists of two regions: the United States (USA) and the rest of the world (ROW), and two goods: manufacturing (good 1) and agriculture (good 2), with the following values of unit labor requirement and population: a1USA=1,a2USA=2,a1ROW=3,a2ROW=4,LUSA=100,LROW=400 With P1/P2 as the world relative price of manufacturing, world relative demand for manufacturing is given by: RD=C2USA+C2ROWC1USA+C1ROW=15ln(P2P1) a) (10 points) Find free trade equilibrium values of the world relative price of manufacturing and relative quantity of manufacturing. Show these values on a diagram of world relative supply and demand. b) (8 points) Beginning from the equilibrium in part (a), suppose the unit labor requirement of agriculture falls by 50% in ROW. Find the new equilibrium values of relative price and quantities, and compare them to the initial equilibrium. Show these values on a diagram of world relative supply and demand. c) (7 points) 1 Beginning from the equilibrium in part (a), suppose the unit labor requirement of manufacturing falls by 50% in ROW. Find the new equilibrium values of relative price and quantities, and determine which country produces how much of each good. Show these values on a diagram of world relative supply and demand