Multiple Choice
Which of the following statements is true,assuming leisure is a normal good?
A) If the income effect is sufficiently large, the labor supply curve will bend backwards.
B) If the income effect is sufficiently small, the labor supply curve will bend backwards.
C) If the income effect is sufficiently large, the labor supply curve will slope down.
D) If the income effect is sufficiently large, the labor supply curve will shift to the left.
Correct Answer:

Verified
Correct Answer:
Verified
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