The figure given below shows the demand curves [D₁ and D₂] and the supply curve [S₁] of capital.Figure 17.1

-In Figure 17.1, if the initial demand curve is D₁, the equilibrium price of capital is:

Question

The figure given below shows the demand curves [D₁ and D₂] and the supply curve [S₁] of capital.Figure 17.1

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 17.1 -In Figure 17.1, 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 17.1, 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 17.1, the initial demand curve is D1. The equilibrium price of capital is P2, the price at which the quantity of capital demanded (Q2) equals the quantity of capital supplied (Q2).

The Figure Given Below Shows the Demand Curves [D1 and D2]

The Figure Given Below Shows the Demand Curves [D₁ and D₂]