Question: When there are 2 inputs K, L, given the price of capital (PK)= 10 and price of labour (PL)=20. Total Expenditure C=100. Draw and explain the effect on the isocost curve in case of the following:-
(i) decrease in price of labour (PL)=10
(ii) increase in the price of capital (PK)= 20
(iii) decrease in the price of capital (PK)= 5
(iv) increase in the firms budget with no change in the price of labour and capital.