Refer to the Information Provided in Figure 7

question 48

Multiple Choice

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 firm's isocost line could shift from CD to CE if the

• A) price of labor increased.
• B) firm's total expenditures increased by 50%.
• C) price of labor decreased by 50%.
• D) firm's total expenditures increased by 50% or the price of capital and labor each decreased by 33%.

---

Definitions:

Taxes

Compulsory financial charges or levies imposed by a government on individuals, businesses, or transactions to fund public services and infrastructure.

Supply

The total amount of a product (goods and services) available for purchase at any specified price.

Single Tax

A fiscal policy advocating for a sole tax to be levied on a single source, often proposed as a tax on land value.

Economic Rents

Payments to a factor of production in excess of the cost needed to bring that factor into production.