Tom started working five hours more each week,after receiving a $5 per hour increase in his hourly wage.This indicates that:

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The substitution effect of the wage increase exceeded the income effect. Tom was willing to work more hours to take advantage of the higher wage rate, increasing his income. This is consistent with the substitution effect, which states that as wages increase, individuals are willing to substitute leisure time for work since the opportunity cost of leisure is now higher.

Tom Started Working Five Hours More Each Week,after Receiving a $5