A backward-bending labor supply curve implies that A) the substitutio

A backward-bending labor supply curve implies that

A) the substitution effect dominates the income effect at higher wage rates but not at lower wage rates.
B) the substitution effect dominates the income effect at lower wage rates but not at higher wage rates.
C) leisure is an inferior good.
D) workers are irrational.

 

ANSWER

B

 

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