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4. Consider the Ricardian model given in Question 3 of
Assignment 1. (a) Derive the relative demand curve relating the
relative demand for tables to the relative price of tables. Do this
algebraically, and then show what the curve looks like in a diagram
(put the relative price of tables on the vertical axis and the
relative quantity of tables on the horizontal axis). (2 marks) (b)
Derive the world relative supply curve of tables. (2 marks) (c) Put
in the same figure the relative demand curve for tables that you
found in part (a) and the world relative supply curve of tables
that you found in part (b). Determine the equilibrium relative
price of tables and the equilibrium relative quantity of tables
under free trade. (2 marks) (d) Under free trade, which country
produces which good(s)? How many units? (2 marks) (e) Who gains
from trade? Who loses from trade? State labours’ stance towards
free trade in each country.

***(Figures from Assignment 1) Assignment 1: Consider
the following model of trade between Home and Foreign. Assume
throughout that those two countries are the only two countries in
the world, at least for purposes of trade. There are two goods:
Tables and Chairs. Consumers always spend two fifths of their
income on chairs and the remainder on tables. The only factor of
production is labour. Each home country worker can produce 1 table
or 4 chairs per unit of time, while each foreign worker can produce
2 tables or 2 chairs per unit of time. There are 20 workers in Home
and 30 in Foreign.

Home Country Opportunity Cost/Comparative Advantage: Tables-4
Chairs-1/4

Foreign Country Opportunity Cost/Comparative Advantage: Tables-1
Chairs -1

Autarky Relative Price of Tables: Home-4 , Foreign- 1

This is all the relevant data I have been provided
with.

What type of tabular data must be provided? This is all
I have been provided with to answer the question

Question: 4. Consider the Ricardian model given in Question 3 ofAssignment 1. (a) Derive the relative dema...