Related to the Economics in Practice on page 131: 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

Since leisure is a normal good, an increase in income (due to higher wages from Uber) would allow drivers to afford more leisure time. Thus, they would work less and buy more leisure.

Related to the Economics in Practice on Page 131: Uber