Multiple Choice
The figure given below shows the demand curves [D1 and 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 demand curve for capital shifts to D<sub>2</sub>, the equilibrium price and quantity of capital are: A) P<sub>1 </sub>and Q<sub>1</sub>. B) P<sub>2 </sub>and Q<sub>2</sub>. C) P<sub>5 </sub>and Q<sub>1</sub>. D) P<sub>3 </sub>and Q<sub>3</sub>. E) P<sub>4 </sub>and Q<sub>4</sub>.](https://d2lvgg3v3hfg70.cloudfront.net/TB2060/11eaaa2d_b6c2_c766_9b29_ffef54ecbb0f_TB2060_00.jpg)
In Figure 16.1, if the demand curve for capital shifts to D2, the equilibrium price and quantity of capital are:
A) P1 and Q1.
B) P2 and Q2.
C) P5 and Q1.
D) P3 and Q3.
E) P4 and Q4.
Correct Answer:
Verified
Correct Answer:
Verified
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