A change in the hours of work that occurs in response to a wage change,other things equal,is known as the

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The change in the hours of work that occurs in response to a wage change, other things equal, is known as the substitution effect. It refers to the change in the quantity of labor demanded due to a change in the relative prices of leisure and labor. A higher wage rate increases the opportunity cost of leisure, leading workers to substitute away from leisure and towards work, and thus work more hours.

A Change in the Hours of Work That Occurs in Response