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

question 96

Multiple Choice

The figure given below shows a backward-bending labor supply curve for an individual. In the figure below, which of the following is true when the wage rate increases from $9 to $11? ​
Figure 12.3
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• A)The substitution effect will cancel out the income effect.
• B)The income effect will cause the person to work more hours.
• C)The substitution effect will cause the person to work fewer hours.
• D)The income effect will cause the person to work the same number of hours.
• E)The substitution effect will cause the person to work the same number of hours.

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