What is the substitution effect for leisure demand?
What will be an ideal response?
The change in leisure resulting from a change in the wage rate compared to the price of other goods. When the price of leisure increases (because wages increased) the quantity of leisure demanded will fall relative to the quantity demanded of goods whose prices have not risen.
You might also like to view...
When the Fed decreases the money stock, the money supply curve shifts to the ________ and the interest rate ________, everything else held constant
A) right; rises B) right; falls C) left; falls D) left; rises
Refer to the figure above. What is the producer surplus before Lithasia opens up to free trade?
A) $6 B) $12 C) $18 D) $24
Refer to the graph shown. Assume that the market is initially in equilibrium at a price of $10 and a quantity of 500 units. If the government imposes a $4 per-unit tax on this product, producer surplus will fall from:
A. 2,500 to 1,600. B. 5,000 to 2,500. C. 3,200 to 1,600. D. 5,000 to 3,200.
The poor have demonstrated a marked ability to move out of poverty when economic opportunities improved
Indicate whether the statement is true or false