Exhibit 12.3 -Refer to Exhibit 12.3,which Shows a Backward-Bending Labor Supply Curve

Exhibit 12.3

-Refer to Exhibit 12.3,which shows a backward-bending labor supply curve for an individual.In the figure below,which of the following is true when the wage rate increases from $11 to $13?

A) The substitution effect will cause the person to work more hours.
B) The income effect will cause the person to work fewer hours.
C) The substitution effect will cause the person to work fewer hours.
D) The income effect will cause the person to work the same number of hours.
E) The substitution effect will cause the person to work the same number of hours.