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    Exam 26: Demand in the Factor Market
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    When the Wage Rate Falls,if the Substitution Effect Outweighs the Output
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When the Wage Rate Falls,if the Substitution Effect Outweighs the Output

Question 80

Question 80

Multiple Choice

When the wage rate falls,if the substitution effect outweighs the output effect,the use of machinery will


A) rise.
B) fall.
C) remain the same.

Correct Answer:

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