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When wages fall the "cost" of leisure falls so the substitution effect would lead to working fewer hours. However the income effect would have the opposite effect so a worker might work more hours.

2007-12-05 14:33:39 · answer #1 · answered by meg 7 · 0 0

hours worked will increase
since alternative to working (leasure) becomes more expensive

2007-12-05 22:29:50 · answer #2 · answered by Anonymous · 0 0

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