Consider an economy with the Cobb-Douglas production function: Y = 4K02L0.8 K=110000; L-9000 Round answers to two places after the decimal when necessary.
a. Derive the equation describing labor demand in this economy as a function of the real wage and the capital stock. Labor demanda 335.54K + W 4K 31554K W 4K + W5
b. The economy has 110000 units of capital and a labor force of 9000 workers.
