Nicole works as a research assistant. When her wage rate was $20 per hour, she worked 35
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Nicole works as a research assistant. When her wage rate was $20 per hour, she worked 35 hours per week. When her wage rate rose to $30 per hour, she decided to work 40 hours per week. When her wage rate rose further to $40, she decided to work 30 hours per week. Draw Nicole’s individual labor supply curve. Indicate on your graph the range of wages over which the income effect dominates for Nicole and the range of wages over which the substitution effect dominates.
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