Use the Following to Answer Questions

Multiple Choice

Use the following to answer questions :
Exhibit: Rental Price of Capital
-(Exhibit: Rental Price of Capital) Based on the graph, if the capital market is initially in equilibrium at A with real rental price R₃/P and capital stock K₂, then holding other factors constant, an improvement in technology that increases the marginal productivity of capital will move:

A) the demand curve from D₂ to D₁.
B) the demand curve from D₂ to D₃.
C) the supply of capital from K₂ to K₁.
D) the supply of capital from K₂ to K₃.