Fred's Hourly Wage Increases from $8 to $10

question 294

Multiple Choice

Fred's hourly wage increases from $8 to $10.Which of the following describes a consequence of the increase in Fred's wage?

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