Copyright

An increase in the wage from $6 per hour to $6.50 per hour causes a worker to increase her hours...

Question:

An increase in the wage from $6 per hour to $6.50 per hour causes a worker to increase her hours worked from 40 to 45 hours per week. For this worker, which effect dominates?

A. Substitution

B. Income

C. Wage

D. Wealth

E. Leisure

Working Hours:

Working hours relate to the amount of time that an employee spends when carrying out his or her work duties. In the U.S, the working hours normally affect the amount of money an employee earns since wage pay is mainly based on the working hours. Thus, employees who work for a long duration earn more than employees who work in the same job but for a shorter duration.

Answer and Explanation: 1

Become a Study.com member to unlock this answer!

View this answer

An increase in the wage from $6 per hour to $6.50 per hour causes a worker to increase her hours worked from 40 to 45 hours per week. For this worker,...

See full answer below.


Learn more about this topic:

Loading...
The Substitution Effect in Macroeconomics: Definition & Example

from

Chapter 3 / Lesson 17
21K

Explore the substitution effect. Learn the definition of the substitution effect and how it differs from the income effect. See examples of the substitution effect.


Related to this Question

Explore our homework questions and answers library