(The Economy Question 9.7) Which of the following statements is correct regarding the effects of a rise in the real wage on the labour supply of a worker? a) The substitution effect means that the worker will increase his consumption of free time. b) The income and substitution effects always enhance each other, leading to higher labour supply. Oc) At high wage levels, the income effect dominates the substitution effect, leading to lower labour supply. d) The income effect means that the worker will increase his labour supply.

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