The following figures show the demand (D) and supply (S) curves of micro and macro economists.Figure 16.6

-Which of the following will shift the demand curve for capital leftward?

Question

The following figures show the demand (D) and supply (S) curves of micro and macro economists.Figure 16.6
 
-​Which of the following will shift the demand curve for capital leftward?

Quizplus · Accepted Answer

Business expectations of increased regulations may lead firms to reduce their investments in capital, which would shift the demand curve for capital leftward. The introduction of supercomputers in the resource market, a fall in the market interest rates, an increase in the price of capital, and a rise in the equilibrium wage of labor may increase the demand for capital, shifting the curve rightward.

The Following Figures Show the Demand (D) and Supply (S)