Answer to Question #305400 in Microeconomics for Suraj

Question

Draw the indifference curve fir someone is deciding to allocate time between work and leisure. What will be the shape of labour supply curve?

Answer 1

When the supply of leisure increases, the income drops drastically because the two are inversely proportional. This means that when one factor increases, the other factor drops by the same value and when one factor drops, the other factor drops by the same value.