All else equal,rising real wages will:
A)decrease average weekly work hours if the income effect exceeds the substitution effect
B)increase average weekly work hours if the income effect exceeds the substitution effect
C)decrease average weekly work hours if the substitution effect exceeds the income effect
D)have no impact on average weekly work hours

Question

Quizplus · Accepted Answer

If the income effect exceeds the substitution effect, individuals may choose to work fewer hours because they can maintain their desired income level with less work.

All Else Equal,rising Real Wages Will