Top Posters
Since Sunday
Home Q & A Board Other Fields Homework Help Business Economics
New Topic  
emlaai emlaai
wrote...
Go to Answer
Posts: 443
Rep: 13 0
5 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 73 times
2 Replies
Replies
Answer verified by a subject expert
zachcarytcriszachcarytcris
wrote...
#1
Posts: 364
Rep: 47 0
5 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...
#2
5 years ago
This calls for a celebration Person Raising Both Hands in Celebration
New Topic      
Quick Reply
Explore
Post your homework questions and get free online help from our incredible volunteers
  1297 People Browsing
Start New Topic Take the Tour CoursesNew Study Tools Topics Trending Browse by Textbook
Related Images
  
 296
  
 2724
  
 1088
Your Opinion
Who will win the 2024 president election?
Votes: 3
Closes: November 4
Previous poll results: Which is the best fuel for late night cramming?