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If Leisure Is a Normal Good for a Worker,and the Income

Question 132

Multiple Choice

If leisure is a normal good for a worker,and the income effect of a wage change dominates the substitution effect,then if wages increase:


A) there will be a decrease in the quantity of labor supplied by the worker.
B) there will be an increase in the quantity of labor supplied by the worker.
C) there will be no change in the quantity of labor supplied by the worker.
D) the worker's individual supply curve will shift to the left.

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