The backward-bending section of the labor supply curve suggests that

A) there is no income effect.
B) the income effect outweighs the substitution effect at those higher wage levels.
C) the substitution effect outweighs the income effect at those higher wage levels.
D) None of the choices are correct.

Backward-Bending

Refers to the portion of a labor supply curve that bends backward at higher wage levels, indicating a decrease in labor supply as wages increase beyond a certain point.

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.

Income Effect

Shifts in economic or personal income and how these shifts influence the demand for certain goods or services.