You observe that when the wage of labor increases, the quantity of labor supplied increases. This indicates which of the following. That the income effect is larger than the substitution effect. That the substitution effect is larger than the income effect. Demand for labor is clastic. Demand for labor is inelastic. Question 2 3 pts If the price of the final product is 20 dollars and the marginal physical product of labor is 2, what is the wage at the firm? 5 dollars. 10 dollars. 30 dollars 40 dollars