As the real wage increases, assuming that the substitution effect dominates, then
a. individuals move to lower indifferent curves and consume less leisure.
b. individuals move to higher indifferent curves and consume less leisure.
c. individuals move to higher indifferent curves and consume more leisure.
d. individuals stay on the same indifferent curve and consume more leisure.
C
Economics
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A small town in West Texas has one gas station. If the price of oil increases, the price of gas that the station charges will most likely a. increase
b. decrease. c. remains the same. d. may increase or decrease.
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