Assume that the U.S. and China are the only 2 countries that…

Assume that the U.S. and China are the only 2 countries that trade with each other. Suppose the world relative price PWorldC =PWorldS is equal to 3 and that5China ends up exporting 12 shoes to the U.S.: Use this information to infer China’s production (point B) of shoes and computers in the following  gure:

Now suppose that there is a wave of immigration into the U.S…

Now suppose that there is a wave of immigration into the U.S. which increases the total number of available workers from Lto Lnew > L. Which of the following 4 options shows correctly how this a ects the labor market equilibrium and the relative wage W=R? In equilibrium, will the relative wage be higher or lower than before? What is the intuition for this result?