Your professor has one hundred final exams to grade,so he hires you to help him grade them,paying you twice the amount you would normally receive because few students are willing to work during final exams week.You take the job.This would be an example of
A)the substitution effect being stronger than the income effect.
B)the income effect being stronger than the substitution effect.
C)a pure income effect.
D)the substitution effect being equal to the income effect.

Question

Quizplus · Accepted Answer

The substitution effect is stronger because the higher pay incentivizes you to work more despite it being finals week, outweighing the income effect which might lead you to work less due to increased income.

Your Professor Has One Hundred Final Exams to Grade,so He