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1. |
The substitution effect of higher wages suggests that as the wage rate increases ? |
A. | leisure becomes less expensive and households buy more of it |
B. | leisure becomes more expensive and households buy more of it |
C. | leisure becomes more expensive and households buy less of it |
D. | leisure becomes less expensive and households buy less of it. |
Answer» D. leisure becomes less expensive and households buy less of it. | |