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Question 2 (25 points total, 5 points each part) Country H Before and After "Itade Equilibria Computers Assume that shoes are a labor-intensive good, and computers are capital-intensive. When H
trades, it is with country F. Use the graph above to answer the following. a) What was the pre—trade consumption/production of shoes and computers?
b) Describe the trade flows between Countries H and F.
c) What is the price ratio (PC/P5) at which free trade occurs? d) Compared to Country H, Country F is relatively abundant and has a
comparative advantage 1n producing e) What happens to wages in Country H after trade? Briefly justify your answer.

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