If Silvia receives a pay cut and the income effect outweighs the price effect on her labor supply decision, she will:

Name: If Silvia receives a pay cut and the income effect outweighs the price effect on her labor supply decision, she will:
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Question

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When the income effect outweighs the price effect, it means that the decrease in income due to the pay cut makes Silvia feel poorer, which incentivizes her to work more hours to compensate for the lost income.

If Silvia Receives a Pay Cut and the Income Effect