The substitution effect of a wage increase
A)probably leads most workers to want to work more.
B)certainly leads all workers to want to work more.
C)probably leads most workers to want to work less.
D)certainly leads most firms to want to employ more workers.

Question

Quizplus · Accepted Answer

The substitution effect of a wage increase makes leisure more expensive relative to work, likely causing most workers to substitute leisure for work, thus wanting to work more.

The Substitution Effect of a Wage Increase