Sally is single.Her income rises because of her wise stock investments,but her wage rate stays the same.In the labor supply model that replaces "leisure" with "household production time," the increase in income will likely
A) increase work hours as she spends less time in the household consuming more commodities.
B) increase work hours as her higher income allows her to buy goods that make her more efficient in the household.
C) decrease work hours because higher income people get more pleasure from working than being in the household.
D) decrease work hours as she spends more time in the household consuming more commodities.
Correct Answer:
Verified
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