Consider the market for capital equipment. Suppose the price of firms' output decreases. Holding all else constant, the equilibrium rental price of capital equipment will

A) decrease.
B) increase.
C) not change.
D) not be able to be determined without more information.

Capital Equipment

Durable goods or assets used in the production of goods or services, often involving significant investment and a long use life.

Equilibrium Rental Price

The rental price at which the quantity of a property demanded by renters equals the quantity of the property supplied by landlords.

Price of Output

The amount of money that a producer receives for selling one unit of a good or service.