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There are two countries Home and Foreign. Relative price of apples Pa/Pb Home has 1,200 units of labor available. It can 6- produce two goods,

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There are two countries Home and Foreign. Relative price of apples Pa/Pb Home has 1,200 units of labor available. It can 6- produce two goods, apples and bananas. The unit labor requirement in apple production is 3, while in banana production it is 2. 5- RS Foreign has a labor force of 800. Foreign's unit labor requirement in apple production is 5, while in banana 4- production it is 1. Suppose world relative demand takes the 3- following form: Demand for apples/demand for bananas = price of bananas/price of apples. 2-45. - EQ a-b. On the graph: 1.) Using the 3-point curved line drawing tool, draw the RD relative demand curve. Label the curve RD 2.) Using the point drawing tool, indicate the :0.5 equilibrium relative price of apples. Label this point ct: 0 0.25 0.5 0.75 EQ Relative quantity of apples Carefully follow the instructions above and only draw the required nhiants4a. The equation for Home's trade possibilities frontier (TPF) is 3 DA + DB = 600 or DB 600 DA 4b. Home's maximum consumption of apples DA is 400 . Home's maximum consumption of bananas DB is 600

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