In the economic way of thinking, "scarcity" is another way of saying

If there is excess demand in a perfectly competitive market, does the government need to intervene to restore the equilibrium price and quantity?

What will be an ideal response?

Consider the two graphs above. Suppose that technological progress is expected to reduce the future cost of capital goods. This would ________ the desired level of the capital stock, as depicted in graph ________

A) increase; B B) increase; A C) decrease; B D) decrease; A