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Describe how qualitative analysis can proceed both inductively and deductively.Use examples from the text to describe each.
Real Wages
Wages that have been adjusted for inflation, reflecting the purchasing power of the income.
Labor Supply Curve
A graphical representation showing the relationship between the wage rate and the quantity of labor workers are willing to offer at that wage rate.
Substitution Effect
The change in consumption patterns due to a change in the relative prices of goods, leading consumers to substitute one good for another that has become relatively cheaper.
Income Effect
Modifications in the earnings of individuals or the broader economy and their effects on the quantity of goods or services demanded.
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