The _____ effect of a _____ wage causes individuals to substitute _____.

A) substitution;higher;labor for leisure
B) income;higher;labor for leisure
C) substitution;lower;labor for leisure
D) complementary;constant;leisure for labor

Substitution Effect

The substitution effect describes the change in consumption patterns due to a change in the relative prices of goods, leading consumers to substitute one good for another.

Higher Wage

The increased remuneration or salary received by an employee, often as a result of promotions, market adjustments, or successful salary negotiations.

Labor for Leisure

The trade-off between working hours for income and spending time on relaxation or enjoyment activities.