# The substitution effect of higher wages suggests that as the wage rate increases ? with Answer - Economics Mcqs | TestPrep

> Solved MCQ: The substitution effect of higher wages suggests that as the wage rate increases ? Correct Answer: C. leisure becomes more expensive and households buy less of it. Verified answer explanation for FPSC, PPSC, MDCAT, NTS, and CSS competitive exam preparation.

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# The substitution effect of higher wages suggests that as the wage rate increases ?

Direct Answer & Quick Reference

The correct option is **C. leisure becomes more expensive and households buy less of it**.

A. leisure becomes less expensive and households buy more of it

B. leisure becomes more expensive and households buy more of it

C. leisure becomes more expensive and households buy less of it **(Correct Answer)**

D. leisure becomes less expensive and households buy less of it.

✨ Explain with AI

Verified Key: C. leisure becomes more expensive and households buy less of it
Solved by 4,165+ students

Verified against official examination board answer keys and standard curriculum textbooks.

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*Source: https://test-prep.blog/mcq/the-substitution-effect-of-higher-wages-suggests-that-as-the-wage-rate-increases-4afb0a23-c62a-44dc-a778-08e3c9328785*
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