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

For which of the following types of goods would demand be most price-elastic?

a. necessities b. goods with many substitutes c. goods that require only a small portion of the buyer's budget d. goods with vertical demand curves e. goods with vertical supply curves

Other things constant, the quantity of money demanded varies directly with the market interest rate

Indicate whether the statement is true or false