With respect to labor supply, the substitution effect takes account of the point that at higher wage rates
A) a person can afford to take more leisure.
B) leisure has become less expensive and so a person consumes less leisure.
C) there are no factors inducing a person to work less.
D) leisure has become more expensive and so a person consumes less leisure.
D
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The law of demand states that, ceteris paribus, price and quantity demanded are:
a. directly related. b. inversely related. c. uniformly related. d. horizontally related.
Other things being equal, the effects of an increase in the price of computers would best be represented by which of the following?
a. A movement up along the demand curve for computers. b. A movement down along the demand curve for computers. c. A leftward shift in the demand curve for computers. d. A rightward shift in the demand curve for computers.