Which of the Following Statements Is True

question 132

Multiple Choice

Which of the following statements is true?

• A) The slope of the labor supply curve depends only on the income effect of a wage rate change.
• B) The income effect and the substitution effect of a change in wage rate work in the same direction.
• C) The income effect and the substitution effect of a change in wage rate work in opposite directions.
• D) The slope of the labor supply curve depends only on the substitution effect of a wage rate change.

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Investing Activities

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