The income effect in the work-leisure model induces a person to work less in response to...

The income effect in the work-leisure model induces a person to work less in response to higher wages, which tends to make the labor-supply curve slope backward.

True / False

Expert Solution

This Statement is false

Reason = The income effect in work leisure model induces a person to work more and enjoy less leisure in response to higher wages which tends the labour supply curve to slope upward

Rahul Sunny answered 2 years ago

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