Top Posters
Since Sunday
5
o
5
4
m
4
b
4
x
4
a
4
l
4
t
4
S
4
m
3
s
3
New Topic  
emlaai emlaai
wrote...
Posts: 443
4 years ago

Question 1.

Assume leisure is a normal good. The substitution effect of a wage decrease implies a ________ demand for leisure and a ________ labor supply.



▸ lower; higher

▸ higher; lower

▸ higher; higher

▸ lower; lower

Question 2.

Assume leisure is an inferior good instead of a normal good. The income effect of a wage increase will lead to a ________ demand for leisure and a ________ labor supply.



▸ higher; higher

▸ higher; lower

▸ lower; higher

▸ lower; lower
Textbook 
Principles of Economics

Principles of Economics


Edition: 12th
Authors:
Read 66 times
2 Replies
Replies
Answer verified by a subject expert
zachcarytcriszachcarytcris
wrote...
Posts: 364
4 years ago
Sign in or Sign up in seconds to unlock everything for free
More solutions for this book are available here
1

Related Topics

emlaai Author
wrote...
4 years ago
This calls for a celebration Person Raising Both Hands in Celebration
New Topic      
Explore
Post your homework questions and get free online help from our incredible volunteers
  1031 People Browsing
Related Images
  
 387
  
 1047
  
 250
Your Opinion
What percentage of nature vs. nurture dictates human intelligence?
Votes: 387