Question: Consider Jillian, whose backward-bending labor supply curve is shown in the fi gure below. Above $50 per hour, increases in wages cause Jillian to work

Consider Jillian, whose backward-bending labor supply curve is shown in the fi gure below. Above $50 per hour, increases in wages cause Jillian to work less, and enjoy more leisure. That implies that leisure is a normal good. True or false: It must then be the case that below $50 per hour, leisure is an inferior good. Explain your answer.

Wage S/hour) Jillian's labor supply $50 Quantity of labor (hours) 60

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