The Following Figures Show the Demand (D) and Supply (S)

question 14

Multiple Choice

The following figures show the demand (D) and supply (S) curves of micro and macro economists.Figure 16.6

-If the price of capital falls, _____.

• A)the supply of capital increases
• B)the quantity supplied of capital decreases
• C)the quantity supplied of capital increases
• D)the quantity supplied of capital remains unchanged
• E)the supply of capital decreases

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Definitions:

Economic Profit

The difference between a firm's total revenue and its opportunity costs, including both explicit and implicit costs.

Savings Account

A deposit account held at a bank or financial institution that provides principal security and a modest interest rate.

Interest Rate

The percentage of a sum of money charged for its use, often expressed annually.

Economic Profits

The surplus gained by a firm when total revenue exceeds total costs, including both explicit and implicit costs, reflecting the financial advantage of a particular course of action.