Answer to Question #144301 in Microeconomics for colton

Question

T or F If a household supplies same amount of labour before and after an increase in wage rate, the household considers leisure to be a normal good.

Answer 1

False : In case the leisure is considered as normal good then when the wages increases the opportunity cost of leisure will also increase and labor supply will fall, but as it has not reduced the labor supply it is not a normal good here in this case,