An Increase in Wealth Will Cause the Labor Supply Curve

question 73

Multiple Choice

An increase in wealth will cause the labor supply curve to:

• A) shift leftward if leisure is a normal good.
• B) slope downward if the substitution effect dominates the income effect.
• C) slope upward if leisure is an inferior good.
• D) bend backward if the income effect outweighs the substitution effect of a change in wealth and if leisure is a normal good.

---

Definitions:

Marketing Action

Initiatives or activities undertaken by a company to promote its products or services with the aim of increasing sales and enhancing brand recognition.

Distribution Channel

A pathway through which goods or services move from the producer to the consumer.

Target Market

One or more specific groups of potential consumers toward which an organization directs its marketing program.

Sustainable Shoes

Footwear designed and produced with environmental and ethical considerations in mind, often using recycled or eco-friendly materials.