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

question 17

Multiple Choice

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

-When the rate of interest rises, the resulting change in the demand for capital is shown graphically by:

• A)a movement down along the demand curve.
• B)a rightward shift of the demand curve.
• C)a leftward shift of the demand curve.
• D)a movement up along the demand curve.
• E)an outward rotation of the demand curve.

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Definitions:

Law of Supply

The principle that, other things equal, an increase in the price of a good leads to an increase in the quantity supplied, and vice versa.

Price

The amount of money required to purchase a good or service, representing the value that consumers or buyers are willing to pay.

Good

An item or service that satisfies human wants and provides utility, which can be transferred from one person to another.

Demand Curve

An illustrative chart that demonstrates the link between a product's price and the amount of it consumers want to buy.