Score 1 11 Chapter se3sem05r Section 12 Problem 052 a decrea

Score: 1 11. Chapter se3sem05r, Section .12, Problem 052 a decreases the demand for leisure time and reduces the amount of time allocated to market work © b, decreases the demand for leisure time and increases the amount of time allocated to market work and nonmarket work. Oc has no impact on the demand for leisure time. d. increases the demand for leisure time and increases the amount of time allocated to market work and nonmarket work e. increases the demand for leisure time and reduces the amount of time allocated to market work and nonmarket work

Solution

A normal good is a good that has positive income relationship. Since leisure is a normal good, an increase in income will cause (e) increase in demand for labour and due to the fixed time available to allocate between different activities, the time allocated to market work and non market work will reduce.