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    Business
  3. Study Set
    Microeconomics Canada
  4. Exam
    Exam 17: Markets for Factors of Production
  5. Question
    If the Wage Rate Increases,the Substitution Effect Gives a Household
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If the Wage Rate Increases,the Substitution Effect Gives a Household

Question 3

Question 3

Multiple Choice

If the wage rate increases,the substitution effect gives a household the incentive to


A) raise its reservation wage.
B) increase leisure and decrease work.
C) increase work and decrease leisure.
D) increase both work and leisure.
E) decrease both work and leisure.

Correct Answer:

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