Question

the custom halloween company purchases a new sewing machine to replace an older machine with limited capabilities. the first week the new machine is used production nearly doubles. which economic principle does this illustrate? the impact of capital investments the law of demand the law of supply the risk of an investment vehicle question 2 (multiple choice worth 5 points)

Explanation:

A sewing machine is a capital good. When the company invests in this new capital (the sewing machine), production increases. The law of demand relates price and quantity demanded. The law of supply relates price and quantity supplied. The risk of an investment vehicle is about the uncertainty of returns from an investment. Here, the key is the impact of investing in capital (the sewing machine) on production.

Answer:

The impact of capital investments