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The Labor Supply Curve

Question 16

Multiple Choice

The labor supply curve


A) slopes upward if the income and substitution effects of a wage increase exactly offset each other
B) is vertical if the income effect of a wage increase is dominant
C) is downward-sloping if the income effect of a wage increase is dominant
D) is vertical if the substitution effect of a wage increase is dominant
E) is horizontal in the long run

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