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Title: If the substitution effect of a wage increase dominates the income effect, the labor supply curve ... Post by: parneetgill on Feb 28, 2019 Question 1. In order for a labor supply curve to be backward bending at high wages,• leisure must be an inferior good. • the substitution effect of a wage increase must be greater than the income effect. • workers must have an irrational response to wage increases. • the income effect of a wage increase must be greater than the substitution effect. Question 2. If the substitution effect of a wage increase dominates the income effect, the labor supply curve has a positive slope.• true • false Title: If the substitution effect of a wage increase dominates the income effect, the labor supply curve ... Post by: jesika1122 on Feb 28, 2019 Content hidden
Title: If the substitution effect of a wage increase dominates the income effect, the labor supply curve ... Post by: parneetgill on Feb 28, 2019 Thanks for your help!
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