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NYC NYC
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8 years ago
Sonya's hourly wage rate was increased from $22 to $28. As a result of the wage increase, Sonya desires to work more fewer and take more hours of leisure. For Sonya:
A) the substitution effect must equal the income effect.
B) the substitution effect dominates the income effect.
C) the income effect must be zero.
D) the income effect dominates the substitution effect.
Textbook 
Principles of Macroeconomics

Principles of Macroeconomics


Edition: 11th
Authors:
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JesslynJesslyn
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NYC Author
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#2
8 years ago
Good answer, thanks.
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