If my wage rate increases, utility maximization requires that my quantity of labor supplied
a. increase
b. decrease
c. increase if the income effect dominates the substitution effect
d. increase if the substitution effect dominates the income effect
e. increase if the substitution effect equals the income effect
D
Economics
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In the consumption function C = a + c(Y - T), the "marginal propensity to consume" appears as
A) a. B) c. C) cY. D) -cT. E) c(Y - T).
Economics
Isoquants that are downward-sloping straight lines exhibit
A) an increasing marginal rate of technical substitution. B) a decreasing marginal rate of technical substitution. C) a constant marginal rate of technical substitution. D) a marginal rate of technical substitution that cannot be determined.
Economics