60 Roger Melissa 50 40 30 20 10 5 10 15 20 25 30 35 40 45 50 Labor (hours worked) b. For Roger, the income effect dominates the substitution c. For Melissa, the income effect dominates the effect in which wage range? substitution effect in which wage range? from $40 to $50 The income effect does not dominate the substitution effect at any given levels of the wage. The income effect does not dominate the substitution from $0 to $40 effect at any given levels of the wage. from $0 to $50 from $0 to $40 from $0 to $40 O from $30 to $40 Wage ($ per hour)
60 Roger Melissa 50 40 30 20 10 5 10 15 20 25 30 35 40 45 50 Labor (hours worked) b. For Roger, the income effect dominates the substitution c. For Melissa, the income effect dominates the effect in which wage range? substitution effect in which wage range? from $40 to $50 The income effect does not dominate the substitution effect at any given levels of the wage. The income effect does not dominate the substitution from $0 to $40 effect at any given levels of the wage. from $0 to $50 from $0 to $40 from $0 to $40 O from $30 to $40 Wage ($ per hour)
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
I need help with B and C.
Transcribed Image Text:60
Roger Melissa
50
40
30
20
10
0 5
10
15
20
25
30
35
40
45
50
Labor (hours worked)
b. For Roger, the income effect dominates the substitution
c. For Melissa, the income effect dominates the
effect in which wage range?
substitution effect in which wage range?
from $40 to $50
The income effect does not dominate the substitution
effect at any given levels of the wage.
The income effect does not dominate the substitution
from $0 to $40
effect at any given levels of the wage.
from $0 to $50
from $0 to $40
from $0 to $40
from $30 to $40
Wage ($ per hour)
Transcribed Image Text:The Labor Market
End of Chapter Problem
-
Roger and Melissa's labor supply schedules are presented in the accompanying tables.
Roger's labor supply
Melissa's labor supply
Hourly wage rate
Hourly wage rate
(hours per week)
(hours per week)
$0
$0
$10
15
$10
10
$20
30
$20
20
$30
40
$30
30
$40
45
$40
35
$50
35
$50
40
a. In the accompanying diagram, move the points to plot
both Roger's and Melissa's labor supply curves.
80
70
60
Roger Melissa
50
(Inoy
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