Consider two workers-Averil and Taylor.They both earn the same wage rate and neither has any non-labor income.Averil chooses to work 40 hours per week and Taylor chooses to work 10 hours per week.Due to improving macroeconomic conditions both workers experience an exogenous 10% increase in their common wage rate.Explain which worker is likely to have a larger income effect as a result of the wage increase.Illustrate with the appropriate graph.

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The Answer of Consider two workers-Averil and Taylor.They both earn the same wage rate and neither has any non-labor income.Averil chooses to work 40 hours per week and Taylor chooses to work 10 hours per week.Due to improving macroeconomic conditions both workers experience an exogenous 10% increase in their common wage rate.Explain which worker is likely to have a larger income effect as a result of the wage increase.Illustrate with the appropriate graph.

Consider Two Workers-Averil and Taylor