Sarah works 40 hours a week at her primary job, which pays $20 per hour. She also works 10 hours a week at McDonald's for $10 per hour. If Sarah gets a $2 per hour raise at her primary job and decides to increase her part- time work to 12 hours a week, then Leisure is a normal good for Sarah.

Question

Quizplus · Accepted Answer

A normal good is one where demand increases as income increases. Sarah's decision to work more hours at McDonald's despite a raise at her primary job suggests she is not treating leisure as a normal good, as she is choosing to work more rather than enjoying more leisure time.

Sarah Works 40 Hours a Week at Her Primary Job