ng.cengage.com/staticb/ui/evo/index.html?d CENGAGE | MINDTAP Aplia Homework: Labor Markets and Labor Unions Attempts Keep the Highest 0 / 2 1. Understanding the backward-bending labor supply curve Paolo has the following labor supply curve: Labor Supply WAGE RATE (Dollars per hour) 3 LABOR (Hours) The income effect of a higher wage outweighs the substitution effect when wages are The Income effect is the phenomenon that workers choose to work hours when they are given a raise, because Grade It Now Save & Continue 23 C Z A