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Other Fields Homework Help Economics Topic started by: gorgeous on Feb 28, 2019



Title: If the income effect of a wage increase equals the substitution effect, the labor supply curve is ...
Post by: gorgeous on Feb 28, 2019

Question 1.

The substitution effect of a wage decrease examines the effect of the decrease in wage income on a worker's ability to consume goods and services.

• true

• false

Question 2.

If the income effect of a wage increase equals the substitution effect, the labor supply curve is horizontal at the equilibrium wage.

• true

• false


Title: If the income effect of a wage increase equals the substitution effect, the labor supply curve is ...
Post by: zachcarytcris on Feb 28, 2019
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Title: If the income effect of a wage increase equals the substitution effect, the labor supply curve is ...
Post by: gorgeous on Feb 28, 2019
Helps a lot... Now I'm ready for my quiz