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The Diagram Below Shows a Firm's Demand for Its Units

Question 39

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The diagram below shows a firm's demand for its units of capital-coin-operated coffee machines.The firm places its machines in universities and colleges across Canada. The diagram below shows a firm's demand for its units of capital-coin-operated coffee machines.The firm places its machines in universities and colleges across Canada.   FIGURE 15-1 -Refer to Figure 15-1.One possible explanation for a shift of the firm's investment demand curve from I<sub>0</sub> to I<sub>2</sub> is A) an increase in the interest rate. B) a technological improvement that reduces the cost per cup of coffee. C) a decrease in the interest rate. D) an increase in the expected MRP of the coffee machines. E) demographic changes that lead to a reduction in the growth rate of the student population at universities. FIGURE 15-1
-Refer to Figure 15-1.One possible explanation for a shift of the firm's investment demand curve from I0 to I2 is


A) an increase in the interest rate.
B) a technological improvement that reduces the cost per cup of coffee.
C) a decrease in the interest rate.
D) an increase in the expected MRP of the coffee machines.
E) demographic changes that lead to a reduction in the growth rate of the student population at universities.

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