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      Question

      What type of supply curve represents a situation where,

      after a certain level, an increase in wage rate decreases labor supply?
      A Perfectly Inelastic Correct Answer Incorrect Answer
      B Inelastic Correct Answer Incorrect Answer
      C Exceptional (Backward Tending) Correct Answer Incorrect Answer
      D Elastic Correct Answer Incorrect Answer

      Solution

      The exceptional or backward-tending labor supply curve represents situations where an increase in price (wage rate) decreases the supply of labor.

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