The figure given below shows a labor supply curve for an ind

The figure given below shows a labor supply curve for an individual Along which part of the labor supply curve in the fieure below does the income efflect of a wage change outweigh the subetitation effecrt Figure 12.1 , Between points c and d e Betwees points a and c Between poinns a and b t Between points b and d eetween points b and e F3 6 2 9 2

Solution

ans part a that is between c and d because backward bending labour supply curve a s negative income effect outweighs the positive substitution effect- fewer hour worked