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

question 39

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 I₂ is

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

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