If leisure is a normal good and the wage increases:
A)labour supply may be upward sloping.
B)labour supply may decrease if substitution effect for leisure outweighs the income effect.
C)labour supply will shift to the right.
D)labour supply must increase if substitution effect for leisure outweighs the income effect.

Question

Quizplus · Accepted Answer

The Answer of If leisure is a normal good and the wage increases:
A)labour supply may be upward sloping.
B)labour supply may decrease if substitution effect for leisure outweighs the income effect.
C)labour supply will shift to the right.
D)labour supply must increase if substitution effect for leisure outweighs the income effect.

If Leisure Is a Normal Good and the Wage Increases