D Question 17 (Figure: Labor Supply) The figure below illustrates Liz Lemon's labor supply curve. For Liz, if the wage rate increases from $25 per hour to $30 per hour, then: Wage Rate 35 30 25 20 15 10 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 Hours of work Liz will worker fewer hours, as the substitution effect dominates the income effect. Liz will work fewer hours, as the income effect dominates the substitution effect. O Liz will work more hours, as the income effect dominates the substitution effect. @ Liz will work more hours, as the substitution effect dominates the income effect.D Question 18 Suppose Drew Carey hires additional workers into his studio to work for him on his game show. As discussed in lecture, which of the following statements about the marginal physical product of labor (MPP ) is TRUE? The MPP, will decrease because each worker now has less capital and other resources to work with. The MPP, will increase because of economies of scale. The MPP will decrease because the new workers are likely to be less productive than the previously hired workers. The MPP, will increase because more workers can get more work done