André has asked his boss for a pay raise.His boss is concerned that,if he increases André's wage,André might work less.In other words,André's boss is concerned that leisure is a normal good for André and that his:

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André's boss is concerned about the income effect being greater than the substitution effect. This means that with a higher income from the raise, André might value leisure time more (since leisure is a normal good) and thus work less, as the additional income allows him to afford more leisure. This concern reflects the idea that the income effect (wanting more leisure as income increases) could outweigh the substitution effect (working more because the wage rate is higher).

André Has Asked His Boss for a Pay Raise