We typically assume that
A)both consumption and leisure are normal goods.
B)both consumption and leisure and complimentary goods.
C)both consumption and leisure are inferior goods.
D)consumption is an inferior good and leisure is a normal good.
E)consumption is a normal good and leisure is an inferior good.

Question

Quizplus · Accepted Answer

In economic theory, it is commonly assumed that both consumption and leisure are normal goods. This means that as income increases, individuals will demand more of both goods. Consumption refers to spending on goods and services, while leisure represents time spent not working. As people's incomes rise, they often choose to increase their consumption and also enjoy more leisure time, reflecting the normal good status of both.

We Typically Assume That