The figure given below shows the demand curves [D₁and D₂] and the supply curve [S₁] of capital. Figure 16.1
- In Figure 16.1,if the initial demand curve is D₁,the equilibrium price of capital is:

Question

The figure given below shows the demand curves [D₁and D₂] and the supply curve [S₁] of capital. Figure 16.1

The figure given below shows the demand curves [D<sub>1 </sub>and D<sub>2</sub>] and the supply curve [S<sub>1</sub>] of capital. Figure 16.1 - In Figure 16.1,if the initial demand curve is D<sub>1</sub>,the equilibrium price of capital is: A) P<sub>2</sub>. B) P<sub>4</sub>. C) P<sub>1</sub>. D) P<sub>5</sub>. E) P<sub>3</sub>.

- In Figure 16.1,if the initial demand curve is D₁,the equilibrium price of capital is:

Quizplus · Accepted Answer

The equilibrium price of capital is the price at which the quantity of capital demanded equals the quantity of capital supplied. In Figure 16.1, the initial demand curve is D1. The equilibrium price of capital is P2 because at this price, the quantity of capital demanded (Q2) equals the quantity of capital supplied (Q1).

The Figure Given Below Shows the Demand Curves [D1 and

The Figure Given Below Shows the Demand Curves [D₁and