The following figures show the demand (D) and supply (S) curves of micro and macro economists.Figure 16.6

-An increase in the wage rate lowers the opportunity cost of leisure and induces people to enjoy more leisure.

Question

The following figures show the demand (D) and supply (S) curves of micro and macro economists.Figure 16.6
 
-An increase in the wage rate lowers the opportunity cost of leisure and induces people to enjoy more leisure.

Quizplus · Accepted Answer

An increase in the wage rate raises the opportunity cost of leisure because it makes the time spent not working (and thus not earning the higher wage) more costly.

The Following Figures Show the Demand (D) and Supply (S)