Les is allowed to work only 8 hours a day at his main job, although he would like to work more hours.He takes a second job.He can work as many hours as he wishes at the second job, but at a lower wage.If leisure is a normal good, then an increase in the wage rate for his first job will reduce the number of hours he chooses to work at his second job.

Question

Quizplus · Accepted Answer

As the wage rate for his first job increases, his opportunity cost of leisure increases. Therefore, he may choose to work fewer hours at both jobs, including the second job.

Les Is Allowed to Work Only 8 Hours a Day