We Are Looking at a Graph with Capital on the Vertical

question 162

Multiple Choice

We are looking at a graph with capital on the vertical axis and labor on the horizontal axis. If the price of labor increases, then the

• A)isocost line becomes steeper.
• B)isoquants become steeper.
• C)isoquants become flatter.
• D)isocost line becomes flatter.
• E)isocost line and isoquants become flatter.