Which of the following statements about the backward bending supply of labor is correct?

I. at higher wages (where supply is downward sloping), the substitution effect dominates the income

effect

II. at higher wages (where supply is downward sloping), the income effect dominates the substitution

effect

III. at higher wages (where supply is downward sloping), income taxes that reduce peoples take home

wage would cause people to work more

IV. at lower wages (where supply is upward sloping), income taxes that reduce peoples take home pay

would encourage people to take more leisure time

a. Only I.

b. II. and III.

c. III and IV.

d. II., III., and IV.