The diagram below shows a firm's demand for its units of capital-coin- operated coffee machines.The firm places its machines in universities and colleges across Canada.
FIGURE 15- 1
-Refer to Figure 15- 1.One possible explanation for a shift of the firm's investment demand curve from I0 to I1 is
A) a decrease in the interest rate.
B) demographic changes that lead to a reduction in the growth rate of the student population at universities.
C) an increase in the interest rate.
D) a technological change that increases the cost per cup of coffee.
E) an increase in the expected MRP of the coffee machines.
Correct Answer:
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