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Susan claims labour supply theory is nonsense. She determines how much income she needs to support her addictionTM to maintaining and insuring her 1967 Mustang
Susan claims labour supply theory is nonsense. She determines how much income she needs to support her "addictionTM to maintaining and insuring her 1967 Mustang convertible. She then works as many hours as necessary. "No crazy income and substitution ef- fects for me." she asserts. [s she right? Depict her labour supply choice in an income-leisure diagram and break a wage increase down intc i1ts constituent mcome and substitution effects
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