Sadie works at a factory for $15 an hour and typically works 40 hours a week. Sadie gets a pay raise and now earns $20 an hour. She decides to work 45 hours a week at $20 an hour. Her response to the pay increase demonstrates the:
A. income effect outweighing the price effect.
B. price effect outweighing the income effect.
C. income effect outweighing the substitution effect.
D. labor effect outweighing the price effect.
B. price effect outweighing the income effect.
You might also like to view...
If the demand for baseballs falls and all other relevant factors remain unchanged, then,
a. the supply for baseballs will fall. b. the quantity supplied of baseballs will fall. c. the supply for baseballs will rise. d. the quantity supplied of baseballs will rise.
Refer to the figure below.________ inflation will eventually move the economy pictured in the diagram from short-run equilibrium at point ________ to long-run equilibrium at point ________, 
A. Rising; B; C B. Falling; A; C C. Falling; A; B D. Rising; A; C
Refer to Table 8.1. Assuming the price of labor (L) is $5 per unit and the price of capital (K) is $10 per unit, which of the following statements is TRUE? A) The firm will use production technique A to produce all three units of output. B) The firm will use production technique B to produce all three units of output. C) The firm will use production technique B to produce the first two units of output and production technique A to produce the third unit of output. D) The firm will use production technique A to produce the first unit and production technique B to produce the second and third units of output.
Answer the question based on the following list of factors that are related to the aggregate demand curve.
Which of the above factors best explain the downward slope of aggregate demand curve?
A. 2, 4, and 6
B. 7, 9, and 10
C. 1, 3, and 8
D. 4, 6, and 7