If an Individual's Supply of Labor Curve Is "Backward Bending

Multiple Choice

If an individual's supply of labor curve is "backward bending," (that is,labor supply falls at high wage rates) then:

A) the substitution effect always dominates the income effect.
B) the income effect always dominates the substitution effect.
C) the substitution effect dominates at low real wage levels and the income effect dominates at high real wage levels.
D) the income effect dominates at low real wage levels and the substitution effect dominates at high real wage levels.