Figure 17-4 -Refer to Figure 17-4.Which of the Following Is True If

question 149

Multiple Choice

Figure 17-4

-Refer to Figure 17-4.Which of the following is true if the wage rate increases from W₀ to W₁?

• A)The income effect is larger than the substitution effect.
• B)The substitution effect is larger than the income effect.
• C)The income effect and the substitution effect are equal.
• D)The supply curve is unit elastic.

---

Definitions:

Free Hands

The freedom or capacity to act or operate without constraint or interference.

Visual Acuity

The clarity of vision or the sharpness of eyesight, measured as the ability to discern letters or numbers at a standardized distance.

Bipedalism

The ability to walk upright on two legs, a key distinguishing feature of humans and our ancestors.

Arched Feet

A foot structure characterized by a pronounced curve along the inside of the sole, which typically enhances balance and support.