Consider the market for capital equipment.Suppose the value of the marginal product of capital equipment increases.Holding all else constant,what will happen to the equilibrium quantity of capital equipment?
A) The equilibrium quantity of capital equipment increases.
B) The equilibrium quantity of capital equipment decreases.
C) The equilibrium quantity of capital equipment does not change.
D) It is not possible to determine what will happen to the equilibrium quantity of capital equipment.
Correct Answer:
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