Which of the Following Best Explains the Backward Bending Portion

question 52

Multiple Choice

Which of the following best explains the backward bending portion of the labor supply curve?

• A)An increase in the wage rate results in a larger income effect and a lower substitution effect.
• B)An increase in the wage rate increases the quantity of labor supplied to the market.
• C)An increase in the wage rate increases the elasticity of the labor supply curve.
• D)An increase in the wage rate leads to a steeper labor supply curve.

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