Because leisure is a normal good,an increase in income _____

Question

Quizplus · Accepted Answer

Leisure is a normal good, which means that as income increases, the demand for leisure time also increases. This leads people to reduce the amount of time allocated to market work and non-market work so that they can have more leisure time. Therefore, an increase in income increases the demand for leisure time and reduces the amount of time allocated to work. Choice A is incorrect because it suggests that an increase in income decreases the demand for leisure time, which contradicts the notion that leisure is a normal good. Choice B is also incorrect because it suggests that an increase in income would decrease the demand for leisure time, which is incorrect. Choice D is incorrect because it suggests that an increase in income would increase the time allocated to work, which is also incorrect. Choice E is incorrect because an increase in income does have an impact on the demand for leisure time.

Because Leisure Is a Normal Good,an Increase in Income _____