Exhibit 12.1
-Refer to Exhibit 12.1 which shows a backward-bending labor supply curve for an individual.Along which part of the labor supply curve in the figure above does the income effect of a wage change outweigh the substitution effect?
A) between points a and b
B) between points a and c
C) between points b and c
D) between points b and d
E) between points c and d
Correct Answer:
Verified
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