Exhibit 12-9 -Rick's Labor Supply Schedule Is Given in Exhibit 12-9.If the in Exhibit

question 67

Multiple Choice

Exhibit 12-9

-Rick's labor supply schedule is given in Exhibit 12-9.If the wage rate decreases from $25 to $20,then:

• A) The substitution effect equals the income effect
• B) No labor is supplied
• C) The substitution effect dominates the income effect
• D) The income effect dominates the substitution effect
• E) The supply curve is vertical

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