As the Result of an Increase in the Price of Capital

question 144

Multiple Choice

As the result of an increase in the price of capital, the demand for labor would ________, the supply of labor would ________, and the quantity of labor hired would ________.

• A) decrease; decrease; decrease
• B) decrease; remain the same; decrease
• C) increase; remain the same; decrease
• D) decrease; increase; remain the same

---

Definitions:

Optimum Point

The most advantageous position or condition that can be achieved in a given circumstance or under certain parameters.

Frozen Yogurt

A dessert made from yogurt and sometimes other dairy products that is frozen and has a taste and texture similar to ice cream.

Indifference Map

A graphical representation of different bundles of goods between which a consumer is indifferent.

Marginal Rate of Substitution

The pace at which a consumer is capable of sacrificing some portion of one item to obtain a different item, without altering their overall happiness.