Exercise 15.21. Consider the baseline model of directed technological change in Section 15.3 and assume that it is in steady state. (1) Show that in steady state the relative price of the two intermediate goods, p, is proportional to (H/L) β. (2) Now assume that the economy opens up to world trade, and faces a relative price of intermediate goods p0 < p. Derive the implications of this for the endogenous changes in technology. Explain why the results are different from those in the text. [Hint: relate your results to the price effect].