Steve and Don are neighbours who work at the same firm and hold the same title.Steve finds that when Don's consumption rises,he feels worse off.Don feels the same way towards Steve's consumption.
-Refer to the information above.Suppose that after offering a first hour of overtime,the firm that employs Steve and Don begins to offer a second hour of overtime.One can predict that
A) Don will work even more but not Steve.
B) both Don and Steve will work even less.
C) both Don and Steve will not change their work hours.
D) both Don and Steve will work even more.
E) Steve will work even more but not Don.

Question

Quizplus · Accepted Answer

Since both Steve and Don feel worse off when the other consumes more, they will likely try to keep up with each other's earnings by working more overtime hours. Therefore, both of them are likely to work even more when the firm offers a second hour of overtime.

Steve and Don Are Neighbours Who Work at the Same