Figure 12.3 -Refer to Figure 12.3.Which of the Following Statements Is True

Multiple Choice

Figure 12.3
-Refer to Figure 12.3.Which of the following statements is true?

A) Panel B correctly describes a situation in which the income effect dominates the substitution effect at low wages (segment i) and again at very high wages (segment iii) .
B) Panel B incorrectly describes a situation in which the income effect dominates the substitution effect at low wages (segment i) and a situation in which the substitution effect dominates the income effect at very high wages (segment iii) .
C) Panel B incorrectly describes a situation in which the income effect dominates the substitution effect at low wages (segment i) .
D) Panel B incorrectly describes a situation in which the income effect dominates the substitution effect at very high wages (segment iii)