If You Know That the Substitution Effect Dominates the Income

question 132

Multiple Choice

If you know that the substitution effect dominates the income effect when Joe's wage rises, you can tell that his labor supply curve is:

• A) upward-sloping.
• B) downward-sloping.
• C) vertical.
• D) upward-sloping at an increasing rate.
• E) downward-sloping at an increasing rate.

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