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Along a Backward-Bending Labor Supply Curve, the

Question 48

Multiple Choice

Along a backward-bending labor supply curve, the


A) income effect always dominates the substitution effect
B) substitution effect always dominates the income effect
C) substitution effect is always equal to the income effect
D) substitution effect dominates the income effect at high wage rates
E) substitution effect dominates the income effect at low wage rates

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