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The substitution effect of an increase in hourly wages ($/hour) implies that hourly workers will:A.Choose to work more hours because their income has increased. B.Chose

  • The substitution effect of an increase in hourly wages ($/hour) implies that hourly workers will:A.Choose to work more hours because their income has increased.
  • B.Chose to work more hours because consumption has become cheaper relative to free time
  • C.Chose to work fewer hours because consumption has more expensive relative to free time.
  • D.Choose to work fewer hours because higher wages mean higher income from the hours they do work.

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