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Suppose that Lisa's wages decrease, and she works more as a result. Describe the roles that the substitution and income effects play in this change
Suppose that Lisa's wages decrease, and she works more as a result. Describe the roles that the substitution and income effects play in this change in Lisa's labor-leisure decision. Giv the directions of the effects and explain intuitively. For an additional point, please graph the wage change and resulting leisure change using the consumption-leisure framework laidout.
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