The Shape of a Competitive Firm's Input Demand Curve When

Multiple Choice

The shape of a competitive firm's input demand curve when all inputs are variable implies that:

A) the output effect of an input price change outweighs the substitution effect of an input price change leading to lower employment at a lower price.
B) the substitution effect of an input price change outweighs the output effect leading to a lower employment at a lower price.
C) the substitution and output effect of an input price change both lead to higher employment at a lower price.
D) the substitution and output effect of an input price change both lead to higher employment at a higher price.