If leisure is a normal good, then an increase in nonlabor income will reduce labor supply.

Name: If leisure is a normal good, then an increase in nonlabor income will reduce labor supply.
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If leisure is a normal good, then an increase in nonlabor income will increase the demand for leisure, thereby reducing labor supply. People will choose to work less and spend more time on leisure activities.

If Leisure Is a Normal Good, Then an Increase in Nonlabor