(Figure: Hourly Wage and Hours of Labor I) Which of the following statements is (are) TRUE? I. At a wage above $18, the income effect dominates the substitution effect.
II) At a wage below $18, the substitution effect dominates the income effect.
III) At a wage above $18, the substitution effect dominates the income effect.
IV) At a wage below $18, the income effect dominates the substitution effect.

Question

(Figure: Hourly Wage and Hours of Labor I) Which of the following statements is (are) TRUE?  I. At a wage above $18, the income effect dominates the substitution effect.
II) At a wage below $18, the substitution effect dominates the income effect.
III) At a wage above $18, the substitution effect dominates the income effect.
IV) At a wage below $18, the income effect dominates the substitution effect.

Quizplus · Accepted Answer

The Answer of (Figure: Hourly Wage and Hours of Labor I) Which of the following statements is (are) TRUE?  I. At a wage above $18, the income effect dominates the substitution effect.
II) At a wage below $18, the substitution effect dominates the income effect.
III) At a wage above $18, the substitution effect dominates the income effect.
IV) At a wage below $18, the income effect dominates the substitution effect.

(Figure: Hourly Wage and Hours of Labor I) Which of the Following