Answered: The tendency for workers to supply more…

The tendency for workers to supply more labor in response to becoming wealthier is called the A. income effect B. real wage effect C. incentive effect D. substitution effecti of a higher real wage.

Economics Today and Tomorrow, Student Edition

1st Edition

ISBN:9780078747663

Author:McGraw-Hill

Publisher:McGraw-Hill

Chapter7: Demand And Supply

Section7.1: Demand

Problem 4R

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Question

K
The tendency for workers to supply more labor in response to becoming wealthier is called the
A. income effect
B. real wage effect
C. incentive effect
D. substitution effect
of a higher real wage.

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