Say a workers sees work and leisure as perfect complements with a ratio of 5 to 1 (requiring 1 hour of leisure for every $5 in income). If this worker earned a wage of $10 her optimal demand for leisure would be:

Question

Quizplus · Accepted Answer

The worker's optimal demand for leisure is 1 hour for every $5 in income. Since the worker earns $10, the optimal demand for leisure is 10/5 = 2 hours.

Say a Workers Sees Work and Leisure as Perfect Complements