If Rita's Labor-Supply Curve Is Downward-Sloping, Then for Rita​

question 560

Multiple Choice

If Rita's labor-supply curve is downward-sloping, then for Rita​

• A)​an increase in the wage creates an income effect that is greater than the substitution effect.
• B)​an increase in the wage creates a substitution effect that is greater than the income effect.
• C)​leisure and consumption are perfect substitutes.
• D)​leisure and consumption are perfect complements.

---

Definitions:

Stoves

Appliances used for heating or cooking, which can operate on various fuels such as gas, electricity, or wood.

Clothing Irons

Electrical appliances used to remove wrinkles from fabric by applying heat and pressure.

Flooding

An exposure therapy technique used in psychology to treat phobias and anxiety disorders, or the occurrence of excessive water covering land that is usually dry.

Sterile Dressing

A germ-free covering applied to a wound to protect it from infection and promote healing.