The figure given below shows the demand [D and D'] and supply [S and S'] curves of shares of stock.Figure 17.2

-As the price of capital falls, the quantity of capital that producers are willing and able to offer falls.

Question

The figure given below shows the demand [D and D'] and supply [S and S'] curves of shares of stock.Figure 17.2
 
-As the price of capital falls, the quantity of capital that producers are willing and able to offer falls.

Quizplus · Accepted Answer

As the price of capital falls, the cost of acquiring capital decreases, making it more affordable for producers to invest in capital. This leads to an increase in the quantity of capital that producers are willing and able to offer.

The Figure Given Below Shows the Demand [D and D']