If the substitution effect of a wage change outweighs the income effect of a wage change, the labor-supply curve is

A) upward sloping.
B) horizontal.
C) vertical.
D) backward bending.

Substitution Effect

The change in consumption patterns due to a change in the relative prices of goods, leading consumers to substitute one good for another that is relatively cheaper.

Income Effect

The variation in income for a person or within an economy, and its influence on the demand levels for a certain good or service.

Labor-Supply Curve

A graph showing the relationship between the quantity of labor supplied and the wage rate, typically illustrating how higher wages encourage more labor supply.