The Diagram Below Shows a Firm's Demand for Its Units

question 68

Multiple Choice

The diagram below shows a firm's demand for its units of capital-coin- operated coffee machines.The firm places its machines in universities and colleges across Canada.
FIGURE 15- 1
-Refer to Figure 15- 1.One possible explanation for a shift of the firm's investment demand curve from I0 to I1 is

• A)a decrease in the interest rate.
• B)demographic changes that lead to a reduction in the growth rate of the student population at universities.
• C)an increase in the interest rate.
• D)a technological change that increases the cost per cup of coffee.
• E)an increase in the expected MRP of the coffee machines.

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