The Labor Supply Curve Is Backward Bending Because

Multiple Choice

The labor supply curve is backward bending because

A) as the wage rate rises, the substitution effect becomes larger than the income effect.
B) as the wage rate rises, the income effect becomes larger than the substitution effect.
C) an increase in the wage rate shifts the supply of labor curve leftward at higher wages.
D) an increase in the wage rate shifts the supply of labor curve rightward at higher wages.