Susie wins $1 million in her state's lottery.If Susie keeps working after she wins the money,we can infer that the income effect is larger than the substitution effect for her.

Question

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It is not possible to infer which effect is larger without additional information about Susie's preferences and work incentives. The income effect may lead Susie to reduce work effort or stop working altogether, while the substitution effect may encourage her to work more due to the now smaller opportunity cost of leisure.

Susie Wins $1 Million in Her State's Lottery