There are two countries, Mexico and Chile, and two goods, copper and oil. Copper requires copper mines as a specic factor while oil requires oil reserves as a specific factor. There is one other factor, labor, which is mobile across sectors. Assume Mexico exports oil and Chile exports copper. A. Graph the production possibilities frontier for Mexico (5 points) B. If the world price ratio of copper to oil was pmpper/ Pail; show, on the graph above, how much copper and how much oil Mexico would produce. Label these quantities qoppg, and Qiit- (3 P011\") C. Show how much oil and copper Mexico consumes on the graph above. Label these quanti- ties d1 and d1 supper oil ' Draw as many indifference curves as you need to. (3 points) D. Suppose the price of exports from Chile increases (there are imports into Mexico). Show, on the graph above, how the production of oil and copper would change in Mexico. Label these quantities qopp and q. (3 points) E. Show how much oil and copper Mexico consumes at the new international prices. Label these values dipper and did. Draw as many indifference curves as you need to. (3 points) F. Did the change in international prices increase or decrease income in units of oil in Mexico? (3 points)