(Table) Based on the Table, What Must Be TRUE About

question 79

Multiple Choice

(Table) Based on the table, what must be TRUE about the labor supply curve as the wage rate rises from $50 to $60 per hour?
$\begin{array}{c}\text { Labor Supply Schedule }\\\begin{array}{|c|c|}\hline \text { Wage Rate (S/hr.) } & \text { Hours of Work (per week) } \\\hline 20 & 30 \\\hline 30 & 40 \\\hline 40 & 50 \\\hline 50 & 40 \\\hline 60 & 30 \\\hline\end{array}\end{array}$

• A) As wages increase, fewer hours of leisure are consumed.
• B) The income effect dominates the substitution effect.
• C) The substitution effect dominates the income effect.
• D) As the wage rate rises, more hours of work are available.

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