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.
Question 2
The prices that people are willing to pay for goods and services mostly depend on:
a. the total utility derived from the goods and services.
b. the marginal utility derived from the goods and services.
c. the availability of raw materials for producing the goods and services.
d. the cost of producing the goods and services.
e. whether the goods are legal, since the laws affect the position of both supply and demand curves.
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