Question $12$ of $75$

$($Table$)$ Based on the table, what must be true about the labor supply curve as the wage rate rises from $\backslash (\backslash$$ $50\backslash )$ to $\backslash (\backslash$$ $60\backslash )$ per hour?

$\backslash$begin$\{$tabular$\}\{|$l$|$l$|\}$

$\backslash$hline Labor Supply Schedule & $\backslash \backslash$

$\backslash$hline Wage Rate $(\backslash$$$/$hr$.)$ & Hours of Work $($per week$)\backslash \backslash$

$\backslash$hline $20$ & $30\backslash \backslash$

$\backslash$hline $30$ & $40\backslash \backslash$

$\backslash$hline $40$ & $50\backslash \backslash$

$\backslash$hline $50$ & $40\backslash \backslash$

$\backslash$hline $60$ & $30\backslash \backslash$

$\backslash$hline

$\backslash$end$\{$tabular$\}$

As wages increase, fewer hours of leisure are consumed.

The income effect dominates the substitution effect.

The substitution effect dominates the income effect.

As the wage rate rises, more hours of work are available.