Suppose Home and Foreign are two countries producing bicycles ($B$) and apples ($A$) using capital and labor inputs. Home and Foreign have the same demand curves for bicycles and apples. In the above graph, $R_H$ and $R_F$ represent the relative quantity of bicycles to apples, and $P_H$ and $P_F$ represent the price of bicycles to apples. Points 1 and 2 represent the autarky equilibrium at Home and in the Foreign respectively. When these two economies trade freely with each other, the world equilibrium takes place at point 3.
20. Which of the following among the predictions of the Heckscher-Ohlin model about the pattern of trade and the changes that will take place after free trade?
a. Apples become relatively expensive at Home and relatively more cheaper in the Foreign.
b. Relative quantity of bicycles to apples produced at Home increases.
c. Opportunity cost of producing bicycles at Home increases.
d. Home exports bicycles