(Table) Based on the table, what must be TRUE about the labor supply curve as the wage rate rises from $50 to $60 per hour?
$\begin{array}{c}
\text { Labor Supply Schedule }\
\begin{array}{|c|c|}
\hline \text { Wage Rate (S/hr.) } & \text { Hours of Work (per week) } \
\hline 20 & 30 \
\hline 30 & 40 \
\hline 40 & 50 \
\hline 50 & 40 \
\hline 60 & 30 \
\hline
\end{array}
\end{array}$

Question

Quizplus · Accepted Answer

The labor supply curve shows that as the wage rate rises from $50 to $60, the hours of work decrease from 40 to 30. This indicates that the income effect (where higher wages allow individuals to afford more leisure time, thus working less) dominates the substitution effect (where higher wages would make work more attractive compared to leisure).

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