A wage _____ reduces the quantity of labour supplied through the _____ effect.
A) decrease;income
B) increase;substitution
C) increase;income
D) decrease;complement

Question

Quizplus · Accepted Answer

An increase in wages can lead to a reduction in the quantity of labor supplied due to the income effect, where workers may choose to work less because they can maintain their desired income level with fewer hours.

A Wage _____ Reduces the Quantity of Labour Supplied Through