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Figure 16-4 -Refer to Figure 16-4. Which of the Following Is True

Question 35

Multiple Choice

Figure 16-4
Figure 16-4 -Refer to Figure 16-4. Which of the following is true at W2? 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 positively sloped.
-Refer to Figure 16-4. Which of the following is true at W2?

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 positively sloped.

Correct Answer: