Ryan Experiences an Increase in His Wages

question 168

Multiple Choice

Ryan experiences an increase in his wages. The hours of labor that he supplies to the market would increase if

• A)the income effect is larger than the substitution effect.
• B)the substitution effect is larger than the income effect.
• C)neither the income effect nor the substitution effect apply to Tom's labor-leisure tradeoff.
• D)Ryan views both labor and leisure as inferior goods.

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