The backward-bending portion of the labor supply curve indicates that as the wage rate rises,
a. the substitution effect dominates the income effect of the higher wage.
b. the number of hours worked increases.
c. the income effect dominates the substitution effect of the higher wage.
d. the income effect reinforces the substitution effect of the higher wage.
c. the income effect dominates the substitution effect of the higher wage.
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Refer to the figure below. If Mallory and Rick are the only two consumers in this market and the price of soda increases from $0.75 to $1.00 per can, the quantity of soda demanded in the market will ________ by ________ cans per week. 
A. decrease; 20 B. increase; 40 C. increase; 20 D. decrease; 40
Which of the following is often referred to as the basic postulate of economics?
What will be an ideal response?
The Temporary Aid to Needy Families (TANF) program:
A. requires that recipients participate in work activities. B. is associated with a decrease in single mothers working. C. has caused a rise in national welfare caseloads. D. was an important factor in the increase in poverty among children between 1993 and 2002.
Suppose a monopoly sells to two identifiably different types of customers, A and B, who are unable to practice arbitrage. The inverse demand curve for group A is PA = 10 - QA, and the inverse demand curve for group B is PB = 18 - QB. The monopolist is able to produce the good for either type of customer at a constant marginal cost of 2, and the monopolist has no fixed costs. If the monopolist is
able to practice group price discrimination, the values of the elasticities of the two groups at the profit-maximizing prices are A) ?A = -1.25, and ?B = -1.5. B) ?A = -1.5, and ?B = -1.25. C) ?A = -0.67, and ?B = -0.8. D) ?A = -0.8, and ?B = -0.67.