For which of the following workers would the substitution effect be more likely to outweigh the income effect of an increase in wage?
A)air traffic controller
B)marketing manager
C)waitress
D)dentist

Question

For which of the following workers would the substitution effect be more likely to outweigh the income effect of an increase in wage?
A)air traffic controller 
B)marketing manager 
C)waitress 
D)dentist

Quizplus · Accepted Answer

The substitution effect is more likely to outweigh the income effect for workers with lower wages, like a waitress, as they are more likely to work more hours when wages increase to maximize their income.

For Which of the Following Workers Would the Substitution Effect