A wage _____ raises the quantity of labour supplied through a strong _____ effect.
A) decrease;substitution
B) increase;substitution
C) increase;income
D) decrease;complement

Question

Quizplus · Accepted Answer

An increase in wage is likely to raise the quantity of labour supplied due to a substitution effect, where individuals are more likely to work more hours at a higher wage rate instead of engaging in leisure activities.

A Wage _____ Raises the Quantity of Labour Supplied Through