When the individual labor supply curve is positively sloped, the _____ effect dominates and higher wages lead to _____ hours worked.

Question

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When the individual labor supply curve is positively sloped, it indicates that the substitution effect dominates. This means that as wages increase, individuals are incentivized to work more hours because the opportunity cost of not working (i.e., the income foregone by enjoying leisure time instead) becomes higher.

When the Individual Labor Supply Curve Is Positively Sloped, the _____