Multiple Choice
In order for a labor supply curve to be backward bending at high wages,
A) leisure must be an inferior good.
B) the substitution effect of a wage increase must be greater than the income effect.
C) workers must have an irrational response to wage increases.
D) the income effect of a wage increase must be greater than the substitution effect.
Correct Answer:

Verified
Correct Answer:
Verified
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