Question

Arrows up or down: An increase in commuting time from 19 minutes to 26 minutes _____ the supply of labor, which _____ the equilibrium wage and _____ the equilibrium quantity of labor.

Answer 1

An increase in commuting time from 19 minutes to 26 minutes generally **decreases** the supply of labor, which **raises** the equilibrium wage and **reduces** the equilibrium quantity of labor.