If both demand for and supply of capital increases by equal amounts,then the equilibrium price of capital goes up,and the equilibrium quantity of capital increases.

Question

Quizplus · Accepted Answer

If both demand for and supply of capital increases by equal amounts, the equilibrium price of capital will remain unchanged and the equilibrium quantity of capital will increase. This is because the increase in demand is offset by the increase in supply, so the market remains in equilibrium.

If Both Demand for and Supply of Capital Increases by Equal