Kip will work fewer hours if his salary increases.For Kip,the ___________ effect must outweigh the __________ effect.

Name: Kip will work fewer hours if his salary increases.For Kip,the ___________ effect must outweigh the __________ effect.
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Question

Quizplus · Accepted Answer

Kip working fewer hours when his salary increases suggests that the income effect, which allows him to maintain the same standard of living with less work, outweighs the substitution effect, which would encourage him to work more hours due to higher wages.

Kip Will Work Fewer Hours If His Salary Increases