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The substitution effect of an increase in the wage rate on the quantity of leisure demanded A Makes leisure more expensive which leads people to

The substitution effect of an increase in the wage rate on the quantity of leisure demanded

A Makes leisure more expensive which leads people to work more

B Makes leisure less expensive which causes people to work less

C Gives people more purchasing power and causes people to demand more leisure

D Gives people less purchasing power and so they will demand less leisure

The positively sloped portion of the supply curve for labour implies that

A Higher wages lead to less hours of work supplied

B The law of diminishing returns has set in

C Higher wages lead to more hours of work supplied

D A minimum wage law is in effect

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