Answered: If the substitution effect of a wage…

If the substitution effect of a wage change outweighs the income effect of a wage change, the labor-supply curve is A) horizontal. B) upward sloping. C) vertical. D) backward bending.

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter16: The Markets For Labor, Capital, And Land

Section: Chapter Questions

Problem 8P

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Question

If the substitution effect of a wage change outweighs the income effect of a wage change, the labor-supply curve is

A) horizontal.
B) upward sloping.
C) vertical.
D) backward bending.

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