How would each of the following affect Helena Handbasket's supply of labor? The value of Helena's home triples in an unexpectedly hot real estate market. OA. The effect on Helena's labor supply is ambiguous because substitution and income effects go in opposite directions in this case. O B. Helena will supply more labor due to both substitution and income effects. C. Helena will supply less labor due to both substitution and income effects. O D. Helena will supply more labor due to the income effect. ✔E. Helena will supply less labor due to the income effect. Originally an unskilled worker, Helena acquires skills that give her access to a job with a higher hourly wage. (Assume that her preferences about leisure are not affected by the change in jobs.) O A. Helena will supply more labor due to both substitution and income effects. O B. Helena will supply less labor due to the income effect. C. The effect on Helena's labor supply is ambiguous because substitution and income effects go in opposite directions in this case. D. Helena will supply more labor due to the income effect. O E. Helena will supply less labor due to both substitution and income effects. A temporary income tax surcharge raises the percentage of her income that she must pay in taxes, for the current year only. (Taxes are proportional income in Helena's country.) A. Helena is likely to supply less labor because short-run substitution effects are likely to exceed income effects. O B. Helena is likely to supply more labor because short-run substitution effects are likely to exceed income effects. C. Helena will supply more labor due to the substitution effect. O D. Helena will supply less labor due to the income effect. O E. Helena will supply more labor due to both substitution and income effects.
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