Suppose the market wage for cashiers increases from $7 per hour to $9 per hour. As a result, Pat, who is a cashier, now works five more hours per week. On the other hand Chris, who is also a cashier, now works five fewer hours per week. Pat's behavior illustrates the ________ effect of a wage increase.

Question

Quizplus · Accepted Answer

The increase in the wage made leisure relatively more expensive for Pat, leading Pat to consume less of it.

Suppose the Market Wage for Cashiers Increases from $7 Per