Based on the intuition underlying the substitution effect, an individual would do the following: (A). Reducing working hours when her wages increase, because she wants to replace leisure with work. (B). Reducing working hours when her wages increase, because she wants to replace work with leisure. (C). Increase working hours when wages increase, because leisure becomes relatively more expensive than consumption. (D). Increase working hours when
4. Based on the intuition underlying the substitution effect, an individual would do the following:
(A). Reducing working hours when her wages increase, because she wants to replace leisure with work.
(B). Reducing working hours when her wages increase, because she wants to replace work with leisure.
(C). Increase working hours when wages increase, because leisure becomes relatively more expensive than consumption.
(D). Increase working hours when wages increase, as leisure becomes relatively cheaper than consumption.
(E). Increase consumption and leisure.
Choose one of the answers from the five choices provided. And please, also provide a brief description, explanation or argument for your choice. Thank you Bartleby!
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