Roxanne's Hourly Wage Increases from $9 to $13

question 27

Multiple Choice

Roxanne's hourly wage increases from $9 to $13. Which of the following describes a consequence of the increase in Roxanne's wage?

• A)The opportunity cost of Roxanne's leisure time has increased.
• B)Roxanne may choose to work fewer hours due to the increase in her wage.
• C)If Roxanne's labor supply curve is upward sloping, she will choose to work fewer hours.
• D)Both a and b are correct.

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Definitions:

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