Lisa Works 46 Hours a Week at $10 an Hour

question 201

Multiple Choice

Lisa works 46 hours a week at $10 an hour.If her wage increases to $16.50:

• A)the substitution effect implies that she will work less.
• B)if leisure is a normal good,the income effect implies that she will work less.
• C)if leisure is a normal good,the income effect will reinforce the substitution effect and she will work less.
• D)Lisa's marginal product of labor has decreased.

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Definitions:

Responsive

The capacity to quickly and effectively adjust to new conditions or changes.

Supply Chain

The interconnected network of individuals, organizations, resources, activities, and technologies involved in the manufacture and sale of a product or service, from the delivery of raw materials to the end user.

Marketing Strategy

A plan of action designed by an organization or individual business to promote and sell its products or services.

Supply Chain

The entire network of entities, directly interlinked and interdependent in servicing the same consumer or customer base, involved in the production, delivery, and sale of a product.