Sadie works at a factory for $15 an hour and typically works 40 hours a week.Sadie gets a pay raise and now earns $20 an hour.She decides to work 45 hours a week at $20 an hour.Her response to the pay increase demonstrates the:
A) income effect outweighing the price effect.
B) price effect outweighing the income effect.
C) income effect outweighing the substitution effect.
D) labor effect outweighing the price effect.
Correct Answer:
Verified
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A) a worker's
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