The Income and Substitution Effects of a Change in the Wage

question 132

Multiple Choice

The income and substitution effects of a change in the wage rate

• A)always work in the same direction
• B)always work in opposite directions
• C)work in opposite directions only if the change is a decrease
• D)work in the same direction only if the change is an increase
• E)work in the same direction only if the change is a decrease

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