Suppose that during an economic boom capital costs rise by 100% and are expected to stay at that level for a long time, while the labour costs stay the same. Draw the firm's output expansion pathbefore and after the boom. Assume that the firm has downward sloping strictly convex isoquants. (Draw several isoquants and isocosts). Put labour on the horizontal axis.

• New isocosts will have slope equal to [ Select ] ["four times", "three times", "twice", "exactly", "one half", "one third", "one fourth"] the slope of the original isocosts.
• The firm will hire [ Select ] ["more", "less", "the same amount of"] labour and [ Select ] ["more", "less", "the same amount of"] capital to produce the same amount of output.
• Output expansion path will [ Select ] ["shift/tilt to the right", "shift/tilt to the left", "stay the same"] .