Figure 17-4 
-Refer to Figure 17-4.Which of the following is true if the wage rate increases from W1 to W2?
A) The income effect becomes larger than the substitution effect.
B) The substitution effect becomes larger than the income effect.
C) The income effect and the substitution effect are equal.
D) The supply curve is unit elastic.
Correct Answer:
Verified
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A)slopes downward
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Q113: Figure 17-3 Q114: Because leisure is a normal good, an Q115: In order for a labor supply curve Q119: For most low-wage earners, Q120: Figure 17-4 Q137: In many European countries it is much
A)the income effect of
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