Two labor-leisure choice diagrams are shown below. In both cases, the labor-leisure choice diagrams show how the individual's desired amount of leisure is influenced by the increas in her or his wage rate from w, to w2. a. INCOME 24W2 C. 24W₁ b. Leisure is normal. HOURS OF LEISURE Figure A Figure A Figure B For each of the following statements, please indicate if the statement is TRUE (between wage rates w, and w₂) for Figure A, Figure B, both figures, or neither figure. Please circle your response. The substitution effect is zero. Figure A Figure B Figure B INCOME Leisure is neither normal nor inferior. Figure A Figure B 24W2 24w1 Both figures Both figures HOURS OF LEISURE Both figures Neither figure Neither figure Neither figure
Two labor-leisure choice diagrams are shown below. In both cases, the labor-leisure choice diagrams show how the individual's desired amount of leisure is influenced by the increas in her or his wage rate from w, to w2. a. INCOME 24W2 C. 24W₁ b. Leisure is normal. HOURS OF LEISURE Figure A Figure A Figure B For each of the following statements, please indicate if the statement is TRUE (between wage rates w, and w₂) for Figure A, Figure B, both figures, or neither figure. Please circle your response. The substitution effect is zero. Figure A Figure B Figure B INCOME Leisure is neither normal nor inferior. Figure A Figure B 24W2 24w1 Both figures Both figures HOURS OF LEISURE Both figures Neither figure Neither figure Neither figure
Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter6: Consumer Choice Theory
Section6.A: Indifference Curve Analysis
Problem 2SQP
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