Final answer:
A clue to whether capital has increased or decreased is found in the overall economic conditions and business confidence, with positive periods like the tech boom increasing demand, and downturns like the Great Recession decreasing it.
Step-by-step explanation:
A good clue as to whether capital has increased or decreased can be inferred from economic conditions and business confidence. For instance, during the technology boom of the late 1990s, businesses had high confidence in new technology investments, which led to an increase in the demand for financial capital; this is represented by a shift to the right in the demand curve. Conversely, during periods of economic downturn, such as the 2008 and 2009 Great Recession, the demand for financial capital tends to decrease, shifting the demand curve to the left, indicating a decrease in capital.
It is also worth noting that changes in other factors, like natural conditions, can impact supply. Good weather can increase the quantity supplied at any given price, resulting in a shift of the supply curve to the right.