For low wages, the leisure demand curve slopes ______; for higher wages it slopes ______.
A) Upward; downward
B) Downward; upward
C) Downward; downward
D) Upward; upward

Question

Quizplus · Accepted Answer

For low wages, individuals are more inclined to value leisure time over work since the opportunity cost of leisure (foregone wages) is lower, leading to a downward slope in the leisure demand curve. As wages increase, the opportunity cost of leisure increases, making work more attractive and causing the leisure demand curve to slope upward.

For Low Wages, the Leisure Demand Curve Slopes ______; for Higher