André Has Asked His Boss for a Pay Raise

Multiple Choice

André has asked his boss for a pay raise. His boss is concerned that if he increases André's salary, André might work less. In other words, André's boss is concerned that leisure is a normal good for André and that his:

A) income and substitution effects might move in the same direction.
B) income effect might be greater than his substitution effect.
C) substitution effect might be greater than his income effect.
D) income and substitution effects might cancel out to zero.