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Lisa Works 46 Hours a Week at $10 an Hour

Question 201

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Lisa works 46 hours a week at $10 an hour.If her wage increases to $16.50:


A) the substitution effect implies that she will work less.
B) if leisure is a normal good,the income effect implies that she will work less.
C) if leisure is a normal good,the income effect will reinforce the substitution effect and she will work less.
D) Lisa's marginal product of labor has decreased.

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