Determine the effects on consumption and labor supply


Problem

Suppose that the representative consumer's dividend income increases, and his or her wage rate falls at the same time. Determine the effects on consumption and labor supply, and explain your results in terms of income and substitution effects.

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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Microeconomics: Determine the effects on consumption and labor supply
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