Henri is paid $9 an hour for the first 40 hours per week that he works.He can also work as many hours overtime as he wishes to.He is paid $15 an hour for every hour that he works beyond 40 hours a week.Leisure is a normal good for Henri and he is currently working some overtime.If his hourly wage for the first 40 hours per week that he works rises to $11 and his wages for overtime remain at $15 per hour, he will choose to work
A)more hours per week.
B)more hours per week if and only if his income exceeds his labor income.
C)the same number of hours per week.
D)fewer hours per week.
E)more hours per day if and only if he works less than 20 hours overtime per week.

Question

Quizplus · Accepted Answer

When the wage for the first 40 hours increases, Henri can maintain his current income by working fewer total hours, assuming leisure is a normal good and he values it. This means he might choose to work fewer hours overall to enjoy more leisure time, given that his income from the first 40 hours has increased.

Henri Is Paid $9 an Hour for the First 40