Consider the market for capital equipment. Suppose the price of firms' output increases. Holding all else constant, the equilibrium rental price of capital equipment will
a. increase.
b. decrease.
c. not change.
d. It is not possible to determine what will happen to the equilibrium rental price of capital equipment.
a
You might also like to view...
Why did the fall in housing prices lead to bank failures in the U.S. during 2007-2009?
What will be an ideal response?
There are 6 firms in a market and the market shares of the firms are 40 percent, 30 percent, 10 percent, 8 percent, 7 percent, and 5 percent. The four-firm concentration ratio is equal to
A) 2738. B) 2664. C) 100. D) 88.
When a tax of $1.00 per gallon is imposed on sellers of gasoline, the supply curve for gasoline shifts upward, but by less than $1.00
a. True b. False Indicate whether the statement is true or false
M2 includes:
a. debit cards. b. credit cards. c. mutual insurance policies. d. money market mutual funds.