If an individual's supply of labor curve is positively sloped ...

[chads108]

If an individual's supply of labor curve is positively sloped throughout, then
 a. the substitution effect always dominates the income effect.
  b. the income effect always dominates the substitution effect.
  c. the substitution effect dominates at low real wage levels and the income effect dominates at high real wage levels.
  d. the income effect dominates at low real wage levels and the substitution effect dominates at high real wage levels.

Question 2

When an individual's wage rises, the income effect tends to
 a. increase hours worked.
  b. decrease hours worked.
  c. leave hours worked unchanged.
  d. it is impossible to predict what will happen to hours worked.

[carlsona147]

Answer to Question 1

a

Answer to Question 2

b

[chads108]

Thank you

[carlsona147]

No problemo