Multiple Choice
Use the following to answer questions:
Figure: Income and Leisure Opportunities
-(Figure: Income and Leisure Opportunities) The figure Income and Leisure Opportunities refers to Keisha when she has 100 hours per week for working or leisure. There are two time allocation lines, one for a $10 hourly wage rate and one for a $20 hourly wage rate. Keisha's optimal choice is point A when the wage is $10, and her optimal choice is point C when the wage is $20. As the amount she earns increases from $10 per hour to $20 per hour, Keisha will work _____ hours because of the income effect.
A) 10 fewer
B) 15 more
C) 25 fewer
D) 50 more
Correct Answer:

Verified
Correct Answer:
Verified
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