Examlex
Which of the following is done in the first step of ACE?
Demand for Leisure
The desire for free time in which one can enjoy personal activities outside of work.
Labor Supply Curve
A graphical illustration of the relationship between the wage rate and the quantity of labor workers are willing to supply at various wage rates.
Substitution Effect
The change in consumption patterns due to a change in the relative prices of goods, leading consumers to substitute one good for another.
Income Effect
The change in consumers' purchasing power and consequently the quantity demanded of a good or service, prompted by a change in real income.
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