n a consumption-leisure model, where P is the price of consumption and w is the wage and h is the hours, how do I mathematically calculate the effect of wage jncrease (wage/price of good) on the ff: >consumption >leisure >hours worked How do I know which is stronger between income effect and substitution effect due to increase in w/p? Note:- Do n
n a consumption-leisure model, where P is the price of consumption and w is the wage and h is the hours, how do I mathematically calculate the effect of wage jncrease (wage/price of good) on the ff: >consumption >leisure >hours worked How do I know which is stronger between income effect and substitution effect due to increase in w/p? Note:- Do n
Chapter16: Labor Markets
Section: Chapter Questions
Problem 16.10P
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In a consumption-leisure model, where P is the price of consumption and w is the wage
and h is the hours, how do I mathematically calculate the effect of wage jncrease (wage/price of good) on the ff:
>consumption
>leisure
>hours worked
How do I know which is stronger between income effect and substitution effect due to increase in w/p?
Note:-
- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.
- Answer completely.
- You will get up vote for sure.
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