Consider mary an hourly worker who currently earns 30000


Consider Mary, an hourly worker who currently earns $30,000 per year. If Mary's wage rate is increased by 50%:

a. the substitution effect will lead Mary to work more

b. the income effect will tell Mary to work more, assuming that leisure is a normal good.

c. the total effect must be an increase in hours worked

d. all of the above

e. none of the above

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Business Economics: Consider mary an hourly worker who currently earns 30000
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