Figure 7.13
-Refer to Figure 7.13.The lines shown in the diagram are isocost lines.A movement from CE to BD occurs when
A)the price of capital increases while the price of labour remains unchanged.
B)the price of labour decreases while the price of capital remains unchanged.
C)the price of capital increases while the price of labour decreases.
D)the price of capital decreases while the price of labour increases.

Question

Figure 7.13 
-Refer to Figure 7.13.The lines shown in the diagram are isocost lines.A movement from CE to BD occurs when
A)the price of capital increases while the price of labour remains unchanged. 
B)the price of labour decreases while the price of capital remains unchanged. 
C)the price of capital increases while the price of labour decreases. 
D)the price of capital decreases while the price of labour increases.

Quizplus · Accepted Answer

The Answer of Figure 7.13 
-Refer to Figure 7.13.The lines shown in the diagram are isocost lines.A movement from CE to BD occurs when
A)the price of capital increases while the price of labour remains unchanged. 
B)the price of labour decreases while the price of capital remains unchanged. 
C)the price of capital increases while the price of labour decreases. 
D)the price of capital decreases while the price of labour increases.

Figure 7.13 -Refer to Figure 7.13.The Lines Shown in the Diagram Are