Suppose the wage decreases. what effect will this have on a worker's labor supply?
a. the su...
Suppose the wage decreases. what effect will this have on a worker's labor supply?
a. the substitution effect of a wage decrease causes the worker to supply a quantity of labor.
b. the income effect of a wage decrease causes the worker to supply a quantity of labor.
c. if the substitution effect is bigger than the income effect, then the supply curve will slope
Answers: 3
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