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Suppose a Worker Is Working 40 Hours a Week at a Certain

Question 5

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Suppose a worker is working 40 hours a week at a certain wage.After the wage rate increases:


A) the worker will work more if the income effect of the wage increase is greater than the substitution effect.
B) the worker will work less if the income effect of the wage increase is greater than the substitution effect.
C) the supply curve of labor will be backward bending if the substitution effect of the wage increase is greater than the income effect.
D) the supply curve of labor will be upward sloping throughout if the income effect of the wage increase is greater than the substitution effect.

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