Consider Jillian, whose backward-bending labor supply curve is shown in the figure below. Above $50 per hour,

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Consider Jillian, whose backward-bending labor supply curve is shown in the figure 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.

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Microeconomics

ISBN: 9781319105563

3rd Edition

Authors: Austan Goolsbee, Steven Levitt, Chad Syverson

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