Multiple Choice
As a response to a change in the wage rate, the substitution effect will:
A) produce an direct relationship between the quantity demanded of an input and its price.
B) produce an direct relationship between the quantity demanded of an input and the price of the other input.
C) produce an inverse relationship between the quantity demanded of an input and the price of the other input.
D) produce an inverse relationship between the quantity demanded of an input and its price.
Correct Answer:
Verified
Correct Answer:
Verified
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