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Unformatted text preview: wages are the price of leisure, higher wages cause a worker to want to work more and spend less time at leisure understand the backward bending labor supply curve Income effect>substitution effect demanding more leisure income effect = substitution effect income effect< substitution effect demand more work wage rate determined by skilled vs non skilled...
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- Spring '08
- Supply And Demand, 25%, 75%, effect Income effect, Substitution Effect Demand