As a person's wage rate increases, the substitution effect ...

[cartlidgeashley]

As a person's wage rate increases, the substitution effect motivates an increase in work and the income effect motivates a decrease in work.
 
  Indicate whether the statement is true or false

Question 2

If you considered steak and lobster to be perfect substitutes for each other, your indifference curves between them would be L-shaped.
 
  Indicate whether the statement is true or false

[alexanderhamilton]

Answer to Question 1

TRUE

Answer to Question 2

FALSE

[cartlidgeashley]

YES! Correct, THANKS for helping me on my review

[kishoreddi]

Thanks for the timely response, appreciate it