Multiple Choice
Diana's labor supply curve changes slope and begins to bend backward at a wage of $44. Thus, for a wage _____ $44, the substitution effect of a wage increase will _____.
A) above; cause Diana to work fewer hours
B) below; cause Diana to work fewer hours
C) below; dominate the income effect
D) above; cause Diana to work more hours
Correct Answer:
Verified
Correct Answer:
Verified
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