Exhibit 12-1 
Along which part of the labor supply curve in Exhibit 12-1 does the income effect of a wage change just equal the substitution effect?
Definitions:
Labor-force Participation Rate
The proportion of the working-age population that is either employed or actively looking for work.
Labor Force
The total number of people aged 16 and over who are either employed or actively seeking employment.
Employed Category
A classification used in labor statistics to describe individuals who are currently employed and working.
Unemployed Category
A classification of individuals who are without a job, actively seeking work, and available to take up employment but are unable to find a job.
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