The substitution effect of a decrease in the wage rate causes the quantity of labor supplied to
A) increase
B) increase only if the individual desires more leisure time
C) increase only if the substitution effect outweighs the income effect
D) decrease
E) decrease only if the individual lowers the value of leisure time
Correct Answer:
Verified
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A)as an inferior good
B)as
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Q58: Exhibit 12-1 Q59: An increase in the wage rate will
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