Question: It seems like as the supply increases, so does the demand - but I don't know what that means in terms of the anser? Figure
It seems like as the supply increases, so does the demand - but I don't know what that means in terms of the anser?

Figure A Figure B Rental rate (dollars per day) Rental rate (dollars per day) X 0 Quantity of resource Quantity of resource Refer to the figures above to answer this question. Figure B represents the market for because all else held the same. O land; landowners respond to higher rental rates by making more land available a nonrenewable resource; as the interest rate increases, less of the resource is supplied O capital; the Hotelling Principle predicts that prices will vary inversely with the interest rate O land; the Hotelling Principle states rental rates will increase predictably over time O capital: as the rental rate increases, the quantity of capital supplied increases and the quantity of capital supplied decreases
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