Related to the Economics in Practice on page 127: Uber drivers can choose to drive as many or as few hours as they desire, and most drivers have another job and drive for Uber as a way to supplement their income. Assuming leisure is a normal good, if Uber increased the wages it paid its drivers then the income effect would result in drivers working ________ and buying ________ leisure.
A) more; less
B) more; more
C) less; less
D) less; more

Question

Quizplus · Accepted Answer

When wages increase, the income effect suggests that drivers feel wealthier and may choose to work fewer hours, opting to enjoy more leisure time, which is considered a normal good.

Related to the Economics in Practice on Page 127: Uber