Question: Question content area Part 1 If wages increase, will a worker supply more labor? Part 2 A . Only if the substitution effect is larger

Question content area
Part 1
If wages increase, will a worker supply more labor?
Part 2
A.
Only if
the substitution effect is larger than the income effectthesubstitutioneffectislargerthantheincomeeffect.
B.
No because
purchasing power has increased and leisure is a normal goodpurchasingpowerhasincreasedandleisureisanormalgood.
C.
Only if
the effect of the increase in purchasing power is larger than that of the opportunity cost of leisure increasingtheeffectoftheincreaseinpurchasingpowerislargerthanthatoftheopportunitycostofleisureincreasing.
D.
Yes because
the substitution effect causes workers to supply a larger quantity of laborthesubstitutioneffectcausesworkerstosupplyalargerquantityoflabor.
E.
Yes because the substitution and income effects both cause workers to supply a larger quantity of labor.

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