If an Individual's Labor Supply Curve Is Upward-Sloping at Low

question 126

Multiple Choice

If an individual's labor supply curve is upward-sloping at low wage rates and downward-sloping at high wage rates, then at higher wage rates:

• A) there is no substitution effect as wages change.
• B) there is no income effect as wages change.
• C) the income effect dominates the substitution effect.
• D) the substitution effect dominates the income effect.

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