Draw the indifference curve for someone deciding how much to work. Suppose the wage increases. Is it

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Draw the indifference curve for someone deciding how much to work. Suppose the wage increases. Is it possible that the person’s consumption would fall? Is this plausible?

Discuss. (Hint: think about income and substitution effects.)

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Economics

ISBN: 124344

2nd Edition

Authors: N. Gregory Mankiw

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