The Figure Given Below Shows the Demand Curves [D₁ and D₂]

question 51

Multiple Choice

The figure given below shows the demand curves [D₁ and D₂] and the supply curve [S₁] of capital.Figure 17.1

-In Figure 17.1, if the demand curve for capital shifts to D₂, the equilibrium price and quantity of capital are:

• A)P₁ and Q₁.
• B)P₂ and Q₂.
• C)P₅ and Q₁.
• D)P₃ and Q₃.
• E)P₄ and Q₄.

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Definitions:

Idle Production Capacity

Occurs when the service provider is available but there is no demand for the service.

Demand Exceeds

A situation where the demand for a product or service surpasses its supply, often leading to stock shortages or increased prices.

No Demand

A market situation where there is no consumer desire or interest in purchasing a specific product or service.

Inconsistency

The state of being inconsistent; lack of uniformity or steadiness in actions, values, or outcomes.