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Figure 17-4 -Refer to Figure 17-4. Which of the Following Is True

Question 112

Multiple Choice

Figure 17-4 Figure 17-4 -Refer to Figure 17-4. Which of the following is true at W<sub>0</sub>? A) The income effect is larger than the substitution effect. B) The substitution effect is larger than the income effect. C) The income effect and the substitution effect are equal. D) The supply curve is negatively sloped.
-Refer to Figure 17-4. Which of the following is true at W₀?

A) The income effect is larger than the substitution effect.
B) The substitution effect is larger than the income effect.
C) The income effect and the substitution effect are equal.
D) The supply curve is negatively sloped.

Correct Answer: