In the Work-Leisure Model,suppose Consumption and Leisure Are Both Normal

question 333

Multiple Choice

In the work-leisure model,suppose consumption and leisure are both normal goods.The income effect of a wage increase results in the worker choosing to

• A) work less than before.
• B) work more than before.
• C) possibly work more or less than before.
• D) work more than before with a higher level of consumption.