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

question 211

Multiple Choice

(Table) Based on the table, what must be TRUE about the labor supply curve for wage rates above $45 per hour?
$\begin{array}{c}\text { Labor Supply Schedule }\\\begin{array}{|c|c|}\hline \text { Wage rate (\$/hr.) } & \text { Hours of work (per week) } \\\hline 10 & 26 \\\hline 15 & 32 \\\hline 25 & 36 \\\hline 35 & 40 \\\hline 45 & 41 \\\hline 50 & 38 \\\hline\end{array}\end{array}$

• A) Workers substitute work for leisure.
• 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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