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Using information from Chapter 4, suppose Home doubles in size, while Foreign remains the same. [start from the same set of assumptions about shoes and
Using information from Chapter 4, suppose Home doubles in size, while Foreign remains the same. [start from the same set of assumptions about shoes and computers relative labor intensity and the fact that foreign is relatively labor abundant]. Show that an equal proportional increase in capital and labor at Home will change the relative price of computers, wage, rental on capital, and the amount traded, but not the pattern of trade.
I haven't been able to draw the graph accordingly
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