The labor-supply curve slopes upward if: a) leisure is a normal good. b) consumption is a normal...
Question:
The labor-supply curve slopes upward if:
a) leisure is a normal good.
b) consumption is a normal good.
c) the income effect on leisure is greater than the substitution effect.
d) the substitution effect on leisure is greater than the income effect.
Labor Supply:
When the labor supply curve sloped upward, it shows that the number of hours worked by a person increases as the wage of the person increases. This can be understood using the concepts of leisure and work.
Answer and Explanation: 1
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View this answerThe correct option is d) the substitution effect on leisure is greater than the income effect.
If the substitution effect on leisure is greater than...
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Labor Supply & Demand Curves | Overview, Shifts & Factors
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Chapter 7 / Lesson 4
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Learn about the labor supply and demand curves in economics. Explore the labor supply and demand curve shifts, and study the factors that impact both curves.
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