As the real wage increases,assuming that the substitution effect dominates,then
A)individuals move to lower indifferent curves and consume less leisure.
B)individuals move to higher indifferent curves and consume less leisure.
C)individuals move to higher indifferent curves and consume more leisure.
D)individuals stay on the same indifferent curve and consume more leisure.

Question

Quizplus · Accepted Answer

As the real wage increases, the substitution effect dominates, leading individuals to consume more leisure and move to higher indifferent curves.

As the Real Wage Increases,assuming That the Substitution Effect Dominates,then