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Safiya Works at a Factory for $15 an Hour and Typically

Question 72

Multiple Choice

Safiya works at a factory for $15 an hour and typically works 40 hours a week. Safiya gets a pay raise and now earns $20 an hour. She decides to work 45 hours a week at her new wage. Safiya's response to the pay increase demonstrates that the _______ effect outweighs the _______ effect.


A) income; prices
B) price; income
C) income; substitution
D) labor; price

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