1)A supply curve is a graphical illustration of the relationship between price and: A

1)

• A supply curve is a graphical illustration of the relationship between price and B. quantity supplied.

A supply curve relates to a graph that is used in economics to show how the number of goods and services supplied is affected by their respective prices. The price of goods is indicated on the vertical axis, and the quantity supplied is indicated on the horizontal axis. The supply curve is different from the demand curve in that the demand curve shows the relation between the price of goods and the amount demanded within a specific period.

2)

C) if the substitution effect is greater than the income effect

When more wages are provided, ideally and rationally workers are more motivated to work and hence work for more hours. This is correct when the substitution effect is more favorable for the worker. The substitution effect means that work is more attractive to the worker than leisure hours if the paid wage is higher. Worker substitutes leisure with work because he thinks higher work means higher income. The income effect is opposite, beyond the expected increase in income, worker prefers leisure even if income is increased.