A Standard model of a Trading Economy Figure 5-2: How an Increase in the Relative Price of Cloth Affects Relative supply Food production, QF W(PC/PF1 r、w(PP2 Cloth production, Q Copyright C 2003 Pearson Education, Inc Slide 5-7Copyright © 2003 Pearson Education, Inc. Slide 5-7 Figure 5-2: How an Increase in the Relative Price of Cloth Affects Relative Supply Q1 VV1 (PC/PF ) 1 Q2 VV2 (PC/PF ) 2 A Standard Model of a Trading Economy TT Cloth production, QC Food production, QF