Marnie Works at the Guest Check-In Desk During Nights at the Hilton

Multiple Choice

Marnie works at the guest check-in desk during nights at the Hilton Hotel in Portland,OR.She has the ability to determine how many hours she works each week.The hotel grants Marnie an increase in her hourly wage from $14 per hour to $20 per hour.How will Marnie respond? Explain your answer.

A) Marnie will increase her hours worked if the income effect of the wage increase is positive.
B) Marnie will decrease her hours worked if the income effect of the wage increase is negative.
C) Marnie will not change her hours worked, as the income effect of the wage increase is zero.
D) Cannot determine given the information provided