When wages increase,if the substitution effect dominates,the quantity of labour supplied will increase.

Question

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According to the law of demand, an increase in wages will lead to a substitution effect where workers will be inclined to work more hours since the opportunity cost of leisure time has increased. Therefore, if the substitution effect dominates, the quantity of labor supplied will increase when wages increase.

When Wages Increase,if the Substitution Effect Dominates,the Quantity of Labour