To construct a house, Eric uses power tools(qK)

and hires workers(qL)

. Power tool rental is $10 per hour, while each worker can be hired at a rate of $30 per hour. Eric has $300 to spend. If the cost of hiring a worker increases to $40, what happens to the isocost curve?

The isocost curve shifts to the left and the slope is unchanged.

The isocost curve rotates inward towards the origin with a steeper slope.

The isocost curve rotates outward from the origin with a flatter slope.

The isocost curve shifts to the right and the slope is unchanged.