According to the income effect, if an employee receives higher wages, ceteris paribus, it leads to fewer hours worked.

Name: According to the income effect, if an employee receives higher wages, ceteris paribus, it leads to fewer hours worked.
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The income effect suggests that as wages increase, individuals can maintain their standard of living while working fewer hours, leading to a decrease in the amount of labor supplied.

According to the Income Effect, If an Employee Receives Higher