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

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

Quizplus · Accepted Answer

A wage increase raises the quantity of labor supplied through the substitution effect, as higher wages make work more attractive compared to leisure.

A Wage _____ Raises the Quantity of Labor Supplied Through