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

question 56

Multiple Choice

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

-The demand curve for capital:

• A)shows the positive relation between capital usage and the quantity of capital demanded.
• B)shows the positive relation between aggregate output and the quantity of capital demanded.
• C)shows the negative relation between rate of inflation and the quantity of capital demanded.
• D)shows the positive relation between technological change and the quantity of capital demanded.
• E)shows the negative relation between price of capital and the quantity of capital demanded.

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Definitions:

Just Noticeable Difference

The smallest difference in stimulation required to detect a change in sensory inputs, also known as the difference threshold.

Detectable Difference

The minimum change in a stimulus that can be correctly identified as different from a reference stimulus a certain proportion of the time.

Ernst Weber

A pioneering psychologist best known for his work in the sensory perception field, including Weber's Law regarding the just-noticeable difference in stimuli.

Sensation

The process through which the senses pick up visual, auditory, and other sensory stimuli and transmit them to the brain.