Multiple Choice
In the backward-bending portion of a labor supply curve:
A) a worker will increase the quantity of labor supplied in response to an increase in the wage.
B) the substitution effect of a wage change outweighs the income effect.
C) the income effect of a wage change outweighs the substitution effect.
D) the substitution effect of a wage change equals the income effect.
Correct Answer:

Verified
Correct Answer:
Verified
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