Julie works at a local hat factory for $12 an hour and typically works 40 hours a week.The company threatens layoffs,so Julie and the others agree to a pay cut.Julie now earns $10 an hour and works every hour over 40 that her boss will let her.Julie's response to this pay cut:
A) was to work more,demonstrating a dominant income effect.
B) was to work more,demonstrating a dominant price effect.
C) was to work less,demonstrating a dominant income effect.
D) was to work less,demonstrating a dominant price effect.
Correct Answer:
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