Assuming that leisure is a normal good. if an individual’s labour supply curve is backward bending then the ?

income effect and the substitution effects are equal

substitution effect outweighs the income effect

income effect outweighs the substitution effect

Assuming that leisure is a normal good. if an individual’s labour s

1.	Assuming that leisure is a normal good. if an individual’s labour supply curve is backward bending then the ?
A.	income effect is zero
B.	substitution effect outweighs the income effect
C.	income effect outweighs the substitution effect
D.	income effect and the substitution effects are equal
Answer» D. income effect and the substitution effects are equal

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Assuming that leisure is a normal good. if an individual’s labour supply curve is backward bending then the ?

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