(Solved): 2. Refer to the diagram below to answer this question.\r\nSuppose the Edgeworth box diagram above ...

2. Refer to the diagram below to answer this question.\r\nSuppose the Edgeworth box diagram above pertains to trade between China and the Singapore Before the ratification of the ASEAN-China Free Trade Agreement (ACFTA), the consumption of computer chips and textiles in both countries is given by point \\( A \\). At point \\( A \\), what is true regarding the relative price of computer chips in the Singapore versus China? If the ratification of ACFTA allows trade to bring about the efficient equilibrium, which point in the diagram indicates the level of consumption by each country? At the new equilibrium, what has happened to the price of chips in the Singapore? How do we know both countries are better off by free trade? [100 POINTS]