The Figure Given Below Shows a Backward-Bending Labor Supply Curve

question 82

Multiple Choice

The figure given below shows a backward-bending labor supply curve for an individual. Along which part of the labor supply curve in the figure below does the substitution effect of a wage change outweigh the income effect? ​
Figure 12.1
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• A)Between points a and b
• B)Between points a and c
• C)Between points b and c
• D)Between points b and d
• E)Between points c and d

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Definitions:

Intimacy

A state of close familiarity or friendship, often referencing emotional closeness in relationships.

Autonomy

The capacity to make an informed, uncoerced decision independently, often discussed in the context of moral, ethical, or legal decision making.

Negligent

Failing to take proper care in doing something, often leading to harm or damage as a result of this carelessness.

Authoritarian

Pertaining to a system of government or leadership style that emphasizes strict obedience to authority at the expense of personal freedom.