Which of the following statements is not true of labor supply?
A) Jerry's labor supply curve can bend backward if the income effect of a higher wage rate outweighs the substitution effect.
B) Bob's labor supply curve will not bend backward if the wage rate is never so high that the income effect outweighs the substitution effect.
C) If there is a wage rate above which the income effect is at least as great as the substitution effect, the labor supply curve will be vertical or bend backward.
D) The labor supply curve will slope upward if the income effect dominates the substitution effect.
E) Hayden's offer to work more hours as a result of a wage increase suggests that the substitution effect dominates the income effect.
Correct Answer:
Verified
Q46: A large inheritance from a relative will
Q47: Exhibit 12.3 Q48: Exhibit 12.2 Q49: Exhibit 12.3 Q52: What was the highest average wage in Q53: Exhibit 12.4 Q54: Exhibit 12.3 Q55: Other things equal,the supply of labor will Q56: Exhibit 12.4 Q81: The market labor supply curve is the Unlock this Answer For Free Now! View this answer and more for free by performing one of the following actions Scan the QR code to install the App and get 2 free unlocks Unlock quizzes for free by uploading documents
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A)vertical