If an Increase in the Wage Rate from $6

question 23

Multiple Choice

If an increase in the wage rate from $6.00 per hour to $6.50 per hour causes a worker to decrease his hours worked from 40 to 35 hours per week,which effect dominates?

• A)Substitution
• B)Income
• C)Wage
• D)Wealth
• E)Leisure

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