According to the Output Effect of a Factor Price Change

Multiple Choice

According to the output effect of a factor price change, if supply of labor increases, then once the firm fully adjusts to the labor supply change it

A) increases output and thus demand for all inputs increases.
B) decreases output and thus demand for all inputs decreases.
C) increases demand for labor alone and there is no change in its output level.
D) increases output and decreases demand for labor.