(Table) Based on the table, what must be TRUE about the labor supply curve for wage rates above $45 per hour?
$\begin{array}{c}
\text { Labor Supply Schedule }\
\begin{array}{|c|c|}
\hline \text { Wage rate (\$/hr.) } & \text { Hours of work (per week) } \
\hline 10 & 26 \
\hline 15 & 32 \
\hline 25 & 36 \
\hline 35 & 40 \
\hline 45 & 41 \
\hline 50 & 38 \
\hline
\end{array}
\end{array}$

Question

Quizplus · Accepted Answer

The labor supply curve shows that as the wage rate increases above $45 per hour, the hours of work decrease (from 41 hours at $45/hr to 38 hours at $50/hr), indicating that the income effect (where workers choose more leisure as their income increases) dominates the substitution effect (where workers would work more hours to take advantage of higher wages).

(Table) Based on the Table, What Must Be TRUE About