Substitution effect is stronger than income effect

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Question

Physician values only earnings and leisure time used to have low wage rate of $10/hour. But now with wage rate going up to $40/hour, the physique decides to spend more time in working each day. This is because: the income effect is zero, the income effect is stronger than the substitution effect, the substitution effect is stronger than the income effect.

Reference no: EM133637295

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