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n 2 = (1 - )q 2 /w 2 (1-t) k 2 = q 2 / (-1- )(1+r)/(1-t) Production function: f(k t ,n t )

n2 = (1 - )q2/w2(1-t)

k2 = q2/ (-1- )(1+r)/(1-t)

Production function: f(kt,nt) = ktant1-a

Use the demand functions to derive an expression for the capital-labor ratio (k2*/n2*)

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