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(Figure: Hourly Wage and Hours of Labor I) Which of the Following

Question 70

Multiple Choice

(Figure: Hourly Wage and Hours of Labor I) Which of the following statements is (are) TRUE? (Figure: Hourly Wage and Hours of Labor I) Which of the following statements is (are) TRUE? I. At a wage above $18, the income effect dominates the substitution effect. II) At a wage below $18, the substitution effect dominates the income effect. III) At a wage above $18, the substitution effect dominates the income effect. IV) At a wage below $18, the income effect dominates the substitution effect. A) I and II B) II and III C) III and IV D) I I. At a wage above $18, the income effect dominates the substitution effect.
II) At a wage below $18, the substitution effect dominates the income effect.
III) At a wage above $18, the substitution effect dominates the income effect.
IV) At a wage below $18, the income effect dominates the substitution effect.


A) I and II
B) II and III
C) III and IV
D) I

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