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Figure 10.4 -Refer to Figure 10.4.Which of the Following Is True at Is

Question 113

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Figure 10.4 Figure 10.4 -Refer to Figure 10.4.Which of the following is true at W<sub>2</sub>? 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 10.4.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: