When the Price of Labor Increases, the Substitution Effect Will

question 132

Multiple Choice

When the price of labor increases, the substitution effect will ________ the quantity of labor demanded and the output effect will ________ it.

• A) increase; increase
• B) increase; decrease
• C) decrease; increase
• D) decrease; decrease

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Definitions:

Fortified Citadel

A fortified citadel is a strong central fortress in a city, designed to provide defense and protection against attacks, often occupying a commanding position.

Shapur I

The second King of the Sassanian Empire, ruling from 240-270 CE, known for his military successes against the Roman Empire and the expansion of Sassanian infrastructure and culture.

Bishapur

An ancient city situated in Iran, known for its archaeological significance and Sassanid-era rock reliefs.

Emperor Valerian

A Roman Emperor who ruled from 253 to 260 AD and is known for his persecution of Christians and his ultimate capture by the Persian Empire.