If an individual's wage rate decreases, the substitution effect will cause the individual to work fewer hours.

Name: If an individual's wage rate decreases, the substitution effect will cause the individual to work fewer hours.
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The substitution effect states that when the wage rate decreases, the opportunity cost of leisure decreases, making leisure more attractive relative to work. As a result, individuals will choose to work fewer hours and consume more leisure.

If an Individual's Wage Rate Decreases, the Substitution Effect Will