Solved

The Figure Given Below Shows a Backward-Bending Labor Supply Curve

Question 75

Multiple Choice

The figure given below 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? ​
Figure 12.3


The figure given below 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? ​ Figure 12.3 ​ ​   A) The substitution effect will cause the person to work more hours. B) The income effect will cause the person to work less 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.


A) The substitution effect will cause the person to work more hours.
B) The income effect will cause the person to work less 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.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents