As the wage rate rises to extremely high levels,the ____________ becomes stronger than the ____________.

A) income effect;substitution effect
B) substitution effect;income effect
C) marginal revenue product;resource demand
D) None of these choices are correct.

Income Effect

The change in an individual's or economy's income and how that change affects the quantity demanded of a good or service.

Substitution Effect

The substitution effect occurs when consumers replace pricier items with less expensive alternatives as prices rise.