Exhibit 12-2
-In Exhibit 12-2, which of the following is true at a wage rate of $14?

Name: Exhibit 12-2 -In Exhibit 12-2, which of the following is true at a wage rate of $14?
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Question

Exhibit 12-2 
-In Exhibit 12-2, which of the following is true at a wage rate of $14?

Quizplus · Accepted Answer

At a wage rate of $14, the individual would be willing to supply 2 hours of labor, which is more than the 1 hour she was willing to supply at a wage rate of $12. This indicates that the substitution effect dominates the income effect, leading to an increase in labor supply as wages increase.

Exhibit 12-2 -In Exhibit 12-2, Which of the Following Is True at Is