04 Jun Question Problem 1 Canada and U.S. trade two products
Question
Problem 1
Canada and U.S. trade two products with each other – Cars (C) and Textile (T ). Denote all US variables with . Each product is produced using labour only but there are two types of workers in each industry: low-skilled workers (L) and high-skilled ones (H). Unskilled workers can easily change occupation and move from one industry to another if they can earn more there. Skilled workers, however, cannot change occupation because their skills are specic to the industry in which they work. For example, in the clothing industry there is no demand for skilled mechanics who spent most of their lives assembling cars. Denote with L low-skilled labor, so that LC and LT are employment of low-skilled workers in auto and textile industries and LC + LT = L is the full employment condition for unskilled labor with L being the total number of unskilled workers. For skilled labor, employment levels are given exogenosuly by H C and H T .
Production technologies in the two industries are the same in both countries and are given by the following production functions:
1
YC = LC H C
YT = L T + H T
where YC and YT are output levels. Consumers in both countries have the same preferences given by utility function
4
3
U = DC DT
Our website has a team of professional writers who can help you write any of your homework. They will write your papers from scratch. We also have a team of editors just to make sure all papers are of HIGH QUALITY & PLAGIARISM FREE. To make an Order you only need to click Ask A Question and we will direct you to our Order Page at WriteDemy. Then fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Fill in all the assignment paper details that are required in the order form with the standard information being the page count, deadline, academic level and type of paper. It is advisable to have this information at hand so that you can quickly fill in the necessary information needed in the form for the essay writer to be immediately assigned to your writing project. Make payment for the custom essay order to enable us to assign a suitable writer to your order. Payments are made through Paypal on a secured billing page. Finally, sit back and relax.
About Writedemy
We are a professional paper writing website. If you have searched a question and bumped into our website just know you are in the right place to get help in your coursework. We offer HIGH QUALITY & PLAGIARISM FREE Papers.
How It Works
To make an Order you only need to click on “Order Now” and we will direct you to our Order Page. Fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Are there Discounts?
All new clients are eligible for 20% off in their first Order. Our payment method is safe and secure.