An Individual's Supply Curve of Labor Is Backward Bending When

Multiple Choice

An individual's supply curve of labor is backward bending when:

A) the income effect dominates at lower wage rates and the substitution effect dominates at higher wage rates.
B) the substitution effect dominates at lower wage rates and the income effect dominates at higher wage rates.
C) the substitution and income effect work in the same direction at lower wage rates but in opposite directions at higher wage rates.
D) the substitution and income effect offset each other at lower wage rates but work in opposite directions at higher wage rates.