According to the substitution effect of labor supply, when the wage rate goes up: O A. the opportunity cost of enjoying leisure goes down. B. it becomes less costly to consume leisure, so people will work more. OC. it becomes more costly to consume leisure, so people will work more. D. firms will hire more workers since people are more willing to work.

According to the substitution effect of labor supply, when the wage rate goes up: O A. the opportunity cost of enjoying leisure goes down. B. it becomes less costly to consume leisure, so people will work more. OC. it becomes more costly to consume leisure, so people will work more. D. firms will hire more workers since people are more willing to work.

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter16: Labor Markets

Section: Chapter Questions

Problem 16.1P

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