A higher wage tends to decrease labor supply due to both substitution effect and income effect. increase labor supply due to both substitution effect and income effect. decrease labor supply due to substitution effect but increase labor supply due to income effect. increase labor supply due to substitution effect but decrease labor supply due to income effect.

A higher wage tends to decrease labor supply due to both substitution effect and income effect. increase labor supply due to both substitution effect and income effect. decrease labor supply due to substitution effect but increase labor supply due to income effect. increase labor supply due to substitution effect but decrease labor supply due to income effect.

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter16: Labor Markets

Section: Chapter Questions

Problem 16.11P

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