Because of the income effect, the labor supply curve is

Name: Because of the income effect, the labor supply curve is
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The income effect refers to the situation where an increase in income leads to a decrease in the quantity of labor supplied. This is because individuals may want to work less if they are able to earn enough income with fewer hours of work. As a result, the labor supply curve can be backward bending, meaning that at higher wages, individuals may actually supply less labor.

Because of the Income Effect, the Labor Supply Curve Is