A consumer has two elements in the consumption bundle, a composite good (Y) bought with income Y that is determined by the wage rate (w) times the hours of work per day (H) and leisure (N) defined as N=24-H. For tax revenue to increase by decreasing the marginal tax rate (w) it must be the case that:

Select one:

a. Leisure (N) is normal and the composite good (Y) is normal.

b. Leisure (N) is inferior and the composite good (Y) is inferior.

c. Leisure (N) is normal and the composite good (Y) is inferior.

d. Leisure (N) is inferior and the composite good (Y) is normal.