Multiple Choice
Use the following to answer questions :
Figure: The Time Allocation Budget Line
-Diana's labour supply curve changes slope and begins to bend backward at a wage of $44.Thus,for a wage _____ $44,the substitution effect of a wage increase will _____.
A) above;cause Diana to work fewer hours
B) below;cause Diana to work fewer hours
C) below;dominate the income effect
D) above;cause Diana to work more hours
Correct Answer:

Verified
Correct Answer:
Verified
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