Refer to the information provided in Figure 7.8 below to answer the question(s) that follow. Figure 7.8
-Refer to Figure 7.8 The firmʹs isocost line could shift from CE to CD if
A) the price of capital increased.
B) the firmʹs total expenditures decreased by 33%.
C) the price of labor increased by 33%.
D) the firmʹs total expenditures decreased by 33% or the price of capital and labor each increased by 50%.

Question

Refer to the information provided in Figure 7.8 below to answer the question(s) that follow.  Figure 7.8
-Refer to Figure 7.8 The firmʹs isocost line could shift from CE to CD if
A) the price of capital increased. 
B) the firmʹs total expenditures decreased by 33%. 
C) the price of labor increased by 33%. 
D) the firmʹs total expenditures decreased by 33% or the price of capital and labor each increased by 50%.

Quizplus · Accepted Answer

The Answer of Refer to the information provided in Figure 7.8 below to answer the question(s) that follow.  Figure 7.8
-Refer to Figure 7.8 The firmʹs isocost line could shift from CE to CD if
A) the price of capital increased. 
B) the firmʹs total expenditures decreased by 33%. 
C) the price of labor increased by 33%. 
D) the firmʹs total expenditures decreased by 33% or the price of capital and labor each increased by 50%.

Refer to the Information Provided in Figure 7