Question: 2. Assuming consumption is a normal good and leisure is an inferior good, hours worked will fall when the wage increases if A. The income

 2. Assuming consumption is a normal good and leisure is an
inferior good, hours worked will fall when the wage increases if A.

2. Assuming consumption is a normal good and leisure is an inferior good, hours worked will fall when the wage increases if A. The income effect dominates the substitution effect. B. The substitution effect dominates the income effect. C. The income and substitution effect move in the same direction (i.e., if they are of the same sign). D. the income and substitution effect move in the opposite direction (i.e., if they are of the opposite sign). E. None of the above

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