A wage _____ reduces the quantity of labor supplied through the _____ effect.
A)decrease;income
B)increase;substitution
C)increase;income
D)decrease;complement

Question

Quizplus · Accepted Answer

An increase in wages can lead to a reduction in the quantity of labor supplied due to the income effect, where workers may choose to work fewer hours because they can maintain the same standard of living with higher wages.

A Wage _____ Reduces the Quantity of Labor Supplied Through