Question: When wage rates increase: a) The income effect has a positive impact on the decision to work. b) The substitution effect has a negative impact

When wage rates increase:

a) The income effect has a positive impact on the decision to work.

b) The substitution effect has a negative impact on the decision to work.

c) The income effect encourages individuals to work more hours.

d) The substitution effect encourages individuals to work more hours

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