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Title: The substitution effect of a wage increase is observed when Post by: liljay on Feb 28, 2019 Question 1. At low wages, the labor supply curve for most people slopes upward because• the supply of labor is perfectly inelastic at low wages. • as wages increase the opportunity cost of leisure increases. • as wages increase income also increases unless hours worked decrease. • the demand for labor is perfectly elastic at low wages. Question 2. The substitution effect of a wage increase is observed when• the higher wage income causes workers to take more leisure and work less. • leisure's higher opportunity cost causes workers to take less leisure and work more. • the higher wage income causes workers to take more leisure and work more. • leisure's higher opportunity cost causes workers to take more leisure and work less. Title: The substitution effect of a wage increase is observed when Post by: swolfe15 on Feb 28, 2019 Content hidden
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