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Consider yourself. Is your individual labor supply curve upward sloping, downward sloping, or backward-bending? describe. Compare and contrast the substitution effect and the income effect in the work hours decisions of individuals. What happens to the work hours of an individual if her wages increase and the income effect dominates? describe. What are the strengths of the neoclassical models of labor supply and labor demand? What are the weaknesses of the neoclassical models of labor supply and labor demand?

Microeconomics, Economics

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