Worker A and Worker B both prefer to work 8 hours a day when their hourly wage is $12 an hour.They are currently working 8 hours a day and getting $12 an hour.Another employer wants to employ them only 6 hours a day (and requires them to not work in another job).Worker A will demand a higher wage to take the 6 hour job (compared to Worker B. when
A) worker A has a more curved (bowed in) set of indifference curves.
B) worker A has a less curved (less bowed in) set of indifference curves.
C) worker A has a higher income elasticity of demand for leisure.
D) worker A has a lower income elasticity of demand for leisure.

Question

Quizplus · Accepted Answer

Worker A's preference for leisure is stronger than Worker B's, as evidenced by their more curved set of indifference curves. This means that Worker A would require a higher wage to compensate for working fewer hours, as they value their leisure time more highly than Worker B.

Worker a and Worker B Both Prefer to Work 8