A country produces two goods, computers and shoes. The country provides you with the following information:

Computer industry:

Production Function: K_C = 2L_C

Shoe industry:

Production Function: K_S = 1/2L_S = 0.5 L_S

The total labor supply of the country is 100 workers.

The total capital in the country is 100 units of capital.

Using the information above, answer the following questions:

(a) Which industry is labor intensive and which industry is capital intensive? Explain how you arrived at your answer. (2 points)

(b) What is the amount of labor and the amount of capital in the computer industry? Show your work. (4 points)

(c) Suppose labor migrates to this country and raises the amount of labor to 150. What is the new amount of labor and capital in the computer industry? Does this match with what you would expect based on the Rybczynski Theorem? Show all the steps of your numerical answer and explain how you arrived at your conclusion (4 points)