Answer
a) Please see the first graph.
b) Please see the second graph.
Work Step by Step
a) The increase in the supply of capital shifts the supply curve to the right. The equilibrium price of capital then decreases. The equilibrium quantity of capital increases.
b) The increase in the supply of capital increases the demand for workers. Thus, the demand curve shifts to the right. The equilibrium price of labor (wages) and the equilibrium quantity of labor both increase.
