If Joe receives an increase in his wage rate and decides to ...

[Evvie72]

If Joe receives an increase in his wage rate and decides to decrease his hours worked, the
 
  A) substitution effect and the income effect must be equal.
  B) substitution effect must exceed the income effect.
  C) income effect must exceed the substitution effect.
  D) substitution effect must be zero.

Question 2

In the figure above, the single-price, unregulated monopoly produces
 
  A) less than 19 units per day.
  B) 20 units per day.
  C) between 21 and 39 units per day.
  D) 40 or more units per day.

[prumorgan]

Answer to Question 1

C

Answer to Question 2

B