Multiple Choice
The income effect of a wage rate increase should lead to
A) an increase in the quantity of labor supplied and a decrease in leisure.
B) an increase in the quantity of labor supplied and an increase in leisure.
C) a decrease in quantity of labor supplied and an increase in leisure.
D) a decrease in the quantity of labor supplied and a decrease in leisure.
Correct Answer:
Verified
Correct Answer:
Verified
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