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Refer to the following diagram, which shows a labor supply curve for an individual. SL Wage rate W 3 W 2 W1 H, H; H2 Hours of Work If the wage rises from W2 to W3, we may conclude that the income effect is stronger than the substitution effect. the income effect and substitution effects are equal. the substitution effect is stronger than the income effect. O labor supply is perfectly inelastic.D Question 6 100% 5 pts At any capital-labor combination, the marginal rate of technical substitution is equal to the slope of the isoquant. the average product of labor relative to the aver ct of capital. the wage relative to the cost of capital. the slope of the indifference curve. the ratio of labor to capital. Question 7 5 pts Which of the following would unambiguously predict a increase in desired hours of work? the substitution effect of a wage decrease the income effect of a wage increase the substitution effect of a wage increase the substitution effect of an increase in income tax rates