Thomas works 55 hours per week as a legal-aid lawyer for the city of Chicago, and his wage is $35 per hour. If his wage increases to $70 per hour:
A) the substitution effect implies that he will work less.
B) if leisure is a normal good, the income effect implies that he will work more.
C) if leisure is a normal good, the income effect will reinforce the substitution effect and he will work more.
D) the substitution effect implies that he will work more.
Correct Answer:
Verified
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