Solved

Exhibit: Rental Price of Capital Based on the Graph

Question 47

Multiple Choice

Exhibit: Rental Price of Capital Exhibit: Rental Price of Capital   Based on the graph, if the capital market is initially in equilibrium at A with real rental price R<sub>3</sub> / P and capital stock K<sub>2</sub>, then holding other factors constant, an increase in the quantity of labour employed will move the real rental price of capital to: A) R<sub>1</sub> / P. B) R<sub>2</sub> / P. C) R<sub>4</sub> / P. D) R<sub>5</sub> / P. Based on the graph, if the capital market is initially in equilibrium at A with real rental price R3 / P and capital stock K2, then holding other factors constant, an increase in the quantity of labour employed will move the real rental price of capital to:


A) R1 / P.
B) R2 / P.
C) R4 / P.
D) R5 / P.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents