In equilibrium, what determines the price of capital and what determines the price of natural resources?
What will be an ideal response?
In equilibrium, the price of capital is determined by the intersection of the supply of capital curve and the demand for capital curve. Similarly, the equilibrium price of natural resources is determined by the intersection of the supply of natural resources curve and the demand for natural resources curve.
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The total revenue received by sellers of a good is the same amount as the:
A. Total income earned by the buyers B. Total amount spent on the good by the buyers C. Price paid by the buyers for each unit of the good D. Profits earned by the sellers of the good
As a result of specialization and trade, individuals no longer have to make choices about how to spend their incomes.
Answer the following statement true (T) or false (F)