In the case of leisure, the substitution effect implies that:
A) when the price of leisure increases, people will work more.
B) when the price of leisure increases, people will work less and relax more.
C) if people tend to work more and relax less, the price of leisure increases.
D) if people tend to work more and relax less, the price of leisure decreases.
A
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Because a monopolist is the sole producer in its market, it can necessarily alter the price of its good
a. by adjusting the quantity it supplies to the market. b. by changing its marginal cost. c. without affecting its average total cost. d. without affecting the quantity sold.
Which of the following would represent the fastest annual growth?
a) An increase in real GDP per capita of 3%. b) An increase in real GDP of 6% and population growth of 4%. c) An increase in real GDP of 2% and population decline of 1%. d) An increase in real GDP of 5% and population growth of 1%.