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Exhibit 12-3 in Exhibit 12-3, Which of the Following

Question 61

Multiple Choice

Exhibit 12-3 Exhibit 12-3 In Exhibit 12-3, which of the following is true at a wage rate of $7? A) The income effect dominates the substitution effect. B) The substitution effect dominates the income effect. C) The income effect exactly offsets the substitution effect. D) No labor is supplied. E) The individual will supply 30 hours of labor. In Exhibit 12-3, which of the following is true at a wage rate of $7?

A) The income effect dominates the substitution effect.
B) The substitution effect dominates the income effect.
C) The income effect exactly offsets the substitution effect.
D) No labor is supplied.
E) The individual will supply 30 hours of labor.

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