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By Itself, the Substitution Effect of an Increase in the Wage

Question 100

Multiple Choice

By itself, the substitution effect of an increase in the wage rate will


A) always lead to an increase in the quantity of labor supplied
B) always lead to a decrease in the quantity of labor supplied
C) lead to an increase in the quantity of labor supplied only if leisure is like a normal good
D) lead to an increase in the quantity of labor supplied only if leisure is not a normal good
E) lead to an increase in the quantity of labor supplied only if the income effect works in the same direction

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