Multiple Choice
Exhibit 123 
In Exhibit 123, which of the following is true when the wage rate increasesfrom $11 to $13?
A) The substitution effect will cause the person to work more hours.
B) The income effect will cause the person to work more hours.
C) The substitution effect will cause the person to work fewer hours.
D) The income effect will cause the person to work the same number of hours.
E) The substitution effect will cause the person to work the same number of hours.
Correct Answer:
Verified
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