Two countries, Home and Foreign produce two goods: cars and trucks. Both countries have 300 units of labor available. The unit labor requirements are: cars trucks Home N W Foreign Assume that consumers in both countries like to consume both goods. They have identical relative demand curves given by DID, = 1/( P. /P,) Solve using trucks as the numeraire; that is, put cars in the numerator. a) Which country has comparative advantage in cars? And in trucks? Explain. b) Derive the world's relative supply curve and show it graphically. c) Use the RS and RD curves to compute the world's relative price and relative demand of cars in equilibrium (after trade). Show it in the graph drawn in b). d) Assume that the price of trucks after trade is equal to 1. Compute the quantity of trucks and cars produced in each country after trade. e) Assume that the price of trucks after trade is equal to 1. Compute the wage in each country after trade. Which country has higher wages