What is the difference between the demand curve and the supply curve for capital?
a. The demand curve slopes downward as marginal product falls, whereas the supply
curve is vertical because the amount of capital remains the same regardless of price.
b. The demand curve slopes downward as marginal product falls, whereas the supply
curve slopes upward because owners are willing to supply more at higher prices.
c. The demand curve is U-shaped as marginal costs fall and then rise, whereas the
supply curve slopes upward because owners are willing to supply more at higher prices.
d. The demand curve slopes upward as marginal product falls, whereas the supply
curve slopes downward when owners are willing to supply less at lower prices.
b. The demand curve slopes downward as marginal product falls, whereas the supply
curve slopes upward because owners are willing to supply more at higher prices.
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