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

question 97

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 $11 to $13? ​
Figure 12.3
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• A)The substitution effect will cause the person to work more hours.
• B)The income effect will cause the person to work less 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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Definitions:

Pleurisy

Also known as pleuritis; this is an inflammation of the parietal pleura of the lungs.

Atelectasis

The collapse of a lung because of fluid, air, pus, or blood.

Lung Cancer

A type of cancer that originates in the lungs, characterized by the uncontrolled growth of cells in the lung tissue.

Asthma

A chronic inflammatory disease of the airways that causes episodes of wheezing, breathlessness, chest tightness, and coughing.