If most people's desire for leisure increases,which one of the following statements is correct?

Question

Quizplus · Accepted Answer

If most people's desire for leisure increases, then the supply of labor will decrease because workers will prefer to work less and have more leisure time. This will drive up the wage rate as firms compete for the reduced supply of labor. However, the quantity of products produced will fall because there are fewer workers producing goods. Therefore, the correct choice is D, which states that the wage rate would rise, and the quantity of products produced would fall.

If Most People's Desire for Leisure Increases,which One of the Following