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Question 11

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Figure: The Time Allocation Budget Line 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
-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

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