Figure 12.3 -Refer to Figure 12.3.In Panel A, at Low Wages (Segment

question 105

Multiple Choice

Figure 12.3
-Refer to Figure 12.3.In Panel A, at low wages (segment i)

• A)the substitution effect outweighs the income effect.
• B)the income effect outweighs the substitution effect.
• C)the substitution effect offsets the income effect.
• D)labour suppliers demand more leisure as wages increase.