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Figure 12.4 -Refer to Figure 12.4.Which of the Following Is True If

Question 15

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Figure 12.4 Figure 12.4 -Refer to Figure 12.4.Which of the following is true if the wage rate increases from W<sub>0</sub> to W<sub>1</sub>? A) The income effect is larger than the substitution effect. B) The substitution effect is larger than the income effect. C) The income effect and the substitution effect are equal. D) The supply curve is unit-elastic.
-Refer to Figure 12.4.Which of the following is true if the wage rate increases from W0 to W1?


A) The income effect is larger than the substitution effect.
B) The substitution effect is larger than the income effect.
C) The income effect and the substitution effect are equal.
D) The supply curve is unit-elastic.

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