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With Respect to Labor Supply, the Substitution Effect Means a

Question 168

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With respect to labor supply, the substitution effect means a


A) person increases his or her hours of labor in response to a higher wage rate.
B) person decreases his or her hours of labor in response to a higher wage rate.
C) person substitutes high paying work for low paying work.
D) firm substitutes capital for labor.

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