If Jeff's wage rate rises, he decides to work more hours. From this, we can infer that.

a. for Jeff, the substitution effect is equal to the income effect.
b. for Jeff, the substitution effect is less than the income effect.
c. for Jeff, the substitution effect is greater than the income effect.
d. none of the above is correct.

If Jeff's wage rate rises, he decides to work more hours. From this, we can infer that  for Jeff, the substitution effect is greater than the income effect - option C.

Explanation:

The substitution effect is stronger than the income effect in a case whereby  the supply of labor increases as the wage rate increases .

On the other hand, when the supply of labor decreases as the wage rate increases, then the income effect is stronger than the substitution effect.

With regards to the scenario given in the question - with an increase in the wage rate, Jeff has decided to work more hours.

Thus, in the given case, it can be inferred that for Jeff, the substitution effect is greater than the income effect.

Therefore, the correct answer is option C.

hi,

henry is an economist and wants to understand the relationship between inflation and consumer spending habits. for his research, he needs the consumer price index for 2014 and the inflation rate. based on the prices of goods given, what will he find to be the cpi and inflation rate for 2014? assume that a consumer’s basket for three consecutive years consists of the following:

you dont privide answer choices.

answer - 15% of a inflatation rate is 15% less in cpi

answer; balance sheets;