This problem continues our example of Australia and New Zealand, oranges and cotton from before, but now with the Heckscher-Ohlin model, and entirely new equations and information. Unlike the Ricardian case, in the H-O version of the model, we have more than one resource, and opportunity cost is increasing (curved PPFs). (The specific resources being used in this problem won't matter until the last question.) Table 1 (below) gives the following information for each country (using Oranges as the good we'll be focusing on, which will be plotted on the horizontal axes) . The PPF equations [ Quantity of Cotton (Qc) produced in each country as a function of Quantity of Oranges (Qo) produced] . Supply equation for oranges [Quantity of oranges produced or supplied (Q o) by firms in each country as a function of the relative price of oranges ((Po / Pc), which is the price of oranges, Po, divided by the price of cotton, Pc).] . Demand equation for oranges [Quantity of oranges demanded (Q o) in each country as a function of their relative price ((Po / Pc)]. Table 1: Production and Demand Information for Australia and New Zealand Australia New Zealand Equation for PPF Qc=-0.015 (Qo)2 - 0.3 Qo + 180 Qc=-0.005 (Qo)2 - 0.1 Qo + 127.5 Quantity of Qos = -10 + (33 1/3) (Pn / Pc) OnS = -10 + 100 (Po / Pc) Oranges Supplied (Qos) Prob Set - #4 - International Econ - Spring 2022 Quantity of QOD = 95 - 25 (Po / Pc) QOP = 30 + 20 (Po / Pc) Oranges Demanded (QOD) where all quantities stand for "millions of tons per period". (The "33 1/3" in one of the equations means "thirty-three and one-third".) Note about Table 1: In class, you learned that a country's supply curve is derived from that country's PPF graph. However, doing this derivation mathematically requires calculus. That is why, in Table 1, I've done the derivation for you (i.e., I've given you the equation for the supply curve that corresponds to each country's PPF). I do expect you to understand the logical and graphical connection between the PPF and the supply curve, as discussed in lecture. But you don't have to know how to derive the supply equation from the PPF equation using calculus. For those interested, I will[Note: This question is about the H-0 model in general, not the specic example in this problem set.] With two goods X and Y, if the free-trade relative price of good X is 0.5, it means that under free trade 0 the price of Good X is twice the price of Good Y. O the price of Good Y is twice the price of Good X. 0 the terms of trade for both countries is equal to 2.0 O the terms of trade for both countries is equal to 0.5