A higher wage _______ the price of _______ and _______ workers incomes.The result of these two changes pulls the quantity of labor supplied in _______ direction(s).
A) increases; leisure; increases; opposite
B) increases; leisure; increases; the same
C) reduces; work effort; reduces; opposite
D) reduces; labor; increases; the same

Question

Quizplus · Accepted Answer

A higher wage increases the price of leisure and increases workers' incomes. This makes leisure relatively more expensive than work, which encourages workers to supply more labor. Therefore, the quantity of labor supplied will increase in the opposite direction of the change in leisure price.

A Higher Wage _______ the Price of _______ and _______

A Higher Wage ___ the Price of _ and _____