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Title: Todd's nominal wage increased by 5%, and the prices of goods that Todd buys increased by 3%. ... Post by: treetreee on Apr 29, 2019 Question 1. Jenny's hourly wage rate was increased from $17 to $21. As a result of the wage increase, Jenny desires to work fewer hours and take more hours of leisure. For Jenny ▸ the income effect must be zero. ▸ the substitution effect dominates the income effect. ▸ the income effect dominates the substitution effect. ▸ the substitution effect must equal the income effect. Question 2. Todd's nominal wage increased by 5%, and the prices of goods that Todd buys increased by 3%. Todd's real wage has ▸ increased. ▸ remained constant. ▸ decreased. ▸ changed by 8%. Title: Todd's nominal wage increased by 5%, and the prices of goods that Todd buys increased by 3%. ... Post by: shawntage on Apr 29, 2019 Content hidden
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