Asked by
makenna harmsen
on Oct 26, 2024
Verified
When wages increase,if the income effect dominates,the quantity of labor supplied will increase.
Income Effect
The income effect describes how changes in consumer income influence purchasing decisions, typically leading to increased spending with higher income.
Wages Increase
An upward adjustment in the amount of compensation workers receive for their labor, influencing purchasing power and cost of living.
Labor Supplied
The total hours that workers are willing to work at a given wage rate, within a specified period.
- Acknowledge the consequences of wage adjustments on the demand and supply of workers, considering the income and substitution effects.
Verified Answer
SB
Learning Objectives
- Acknowledge the consequences of wage adjustments on the demand and supply of workers, considering the income and substitution effects.