Worker A and Worker B both prefer to work 8 hours a day when their hourly wage is $12 an hour. They are currently working 8 hours a day and getting $12 an hour. Another employer wants to employ them only 6 hours a day (and requires them to not work in another job) . Worker A will demand a higher wage to take the 6 hour job (compared to Worker B. when
A) worker A has a more curved (bowed in) set of indifference curves.
B) worker A has a less curves (less bowed in) set of indifference curves.
C) worker A has a higher income elasticity of demand for leisure
D) worker A has a higher income elasticity of demand for leisure.
Correct Answer:
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