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Peregrinus Peregrinus
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6 years ago
Mary earns $20 an hour and works 10 hours a week. She gets a raise to $30 an hour but at the same time her fixed weekly work expenses go up $100. If she continues to work, she will most likely
A) continue to work 10 hours.
B) increase her hours of work.
C) decrease her hours of work.
D) decrease her hours of work if the income effect dominates the substitution effect.
Textbook 
Modern Labor Economics: Theory and Public Policy

Modern Labor Economics: Theory and Public Policy


Edition: 12th
Authors:
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ShadiasShadias
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