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Assuming That Leisure Is a Normal Good, If an Individual's

Question 4

Multiple Choice

Assuming that leisure is a normal good, if an individual's labor supply curve is backward bending, then the


A) income effect outweighs the substitution effect at higher wages.
B) substitution effect outweighs the income effect at higher wages.
C) income effect and the substitution effects are equal.
D) income effect is zero.

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