Question: If a worker's substitution effect currently dominates their income effect, what can we say about the supply curve for that person's labor? Select an answer
If a worker's substitution effect currently dominates their income effect, what can we say about the supply curve for that person's labor?
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(a)They are currently on a downward sloping portion of their labor supply curve
(b)Their labor supply curve will be horizontal
(c)They are currently on an upward sloping portion of their labor supply curve
(d)Their labor supply curve will be vertical
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