An increase in wealth of some workers will cause the labor supply curve associated with those workers to:
A)be backward-bending if the income effect outweighs the substitution effect of a change in wealth, and leisure is a normal good.
B)be downward-sloping if the substitution effect dominates the income effect.
C)shift leftward if leisure is a normal good.
D)be upward-sloping if leisure is an inferior good.
What is true for those for whom leisure is a normal good?
A) The labor supply curve always slopes down.
B)The income effect of a wage change always moves in the opposite direction from the substitution effect.
C)The labor supply curve always slopes up.
D)The income effect of a wage change always moves in the same direction as the substitution effect.