4 |_ 2. (5 points) Labor AB is the original (starting) isocost line. AC is the new (changed) isocost line. Q0 is the isoquant. D is the original tangency point (cost minimization point for output Q0). (a) Is price of capital rising or falling or unchanged when the isocost line moves from AB to AC? Please explain. (b) Please draw an isoquant and show the new tangeney point between the new isocost line AC and an isoquant that would indicate the new equilibrium point for this rm. (c) As a result of the price change, does output fall or rise? Please explain. 4. (5 points) Currently wages show signs of increasing in the United States as the economy continues to recover from the pandemic. Companies are having trouble hiring workers and often higher wages are also not enough to convince workers to accept jobs at many companies. Explain how the shortage is due to a change in demand for workers and a change in supply of workers during the recovery from the pandemic. You must explain why demand for workers and supply of workers is low or high and why is low or high