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Exhibit 12-9 -Rick's Labor Supply Schedule Is Given in Exhibit 12-9.If the in Exhibit

Question 46

Multiple Choice

Exhibit 12-9
Exhibit 12-9 -Rick's labor supply schedule is given in Exhibit 12-9.If the wage rate decreases from $25 to $20,then: A) The substitution effect equals the income effect B) No labor is supplied C) The substitution effect dominates the income effect D) The income effect dominates the substitution effect E) The supply curve is vertical
-Rick's labor supply schedule is given in Exhibit 12-9.If the wage rate decreases from $25 to $20,then:

A) The substitution effect equals the income effect
B) No labor is supplied
C) The substitution effect dominates the income effect
D) The income effect dominates the substitution effect
E) The supply curve is vertical

Correct Answer: