B. Suppose that demand and supply for capital are identical in the housing and nonhousing sector, taking the form kd 1r2 5 1A 2 r2/a and ks 1r2 5 1B 1 r2/b (as in the example of part B of the text). In this example, let A 5 1, B 5 0, a 5 0.00000015, and b 5 0.00000001.