Answer:Substitution effect is greater than Income Effect
Explanation:
When there is increase in supply of labor as the wage rate increases then substitution effect dominates over Income effect.
on the other hand, When supply of labor decreases as the wage rate increases then income effect is stronger than substitution effect.
Here in this case with the increase in wage rate there is an increase in working hours. Therefore Substitution effect is greater than Income Effect
Answer:
B: <u>The US and the USSR</u>
Explanation:
I just did a presentation over this in my APUSH class. Good luck!
The correct answer will be A. Tariff
