Refer to the Information Provided in Figure 7

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 would shift from CD to CE if

A) the price of capital fell.
B) the firm's total expenditure on inputs increased.
C) the price of labor fell.
D) either the price of labor fell or the firm's total expenditure on inputs increased.