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Supply of Labor in Perfect Competition
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Problem 10
Supply of Labor in Perfect Competition
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15. Markets for the Factors of Production / Supply of Labor in Perfect Competition / Problem 8
Problem 8
Evaluate how the income effect can lead to increased demand for leisure as wages rise.
A
It leads to a decrease in labor supply.
B
It increases the demand for leisure as individuals have more purchasing power.
C
It has no impact on the demand for leisure.
D
It decreases the demand for leisure as individuals have less purchasing power.
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