5. If we believe that the labor supply curve is backward bending then we must believe that:

1. the substitution effect of a wage increase dominates the income effect at very high wages.
2. the substitution effect of a wage increase dominates the income effect at any wage rate.
3. the trade-off between work and leisure is insignificant.
4. the income effect of a wage increase dominates the substitution effect at very high wages.
5. the income effect of a wage increase dominates the substitution effect at any wage rate.

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