Do you consider leisure to be a normal or inferior good? Why? Under what circumstances might...

Do you consider leisure to be a normal or inferior good? Why? Under what circumstances might you think differently?

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Expert Solution

Normal good is a good for which the demand become higher as income of buyer rises.And fo Inferior good demand falls as income falls.

Leisure is the free time with no jobs or the time when on takes rest. Leisure is considered as a normal good because the demand for leisure increases when the income of common increases. Labor supply is explained the sum of hours which workers like to work with the provided real wage. As rise in real wage happens the workers have more working time and they earn more. But increase in leisure demand due to the rise in income makes supply of workers less. and it causes them to spend higher income on the leisure.

Leisure is also considered as an inferior good . It happens when increase in income decreases the consumtion.This condition reasons to the decreased demand for leisure hours. And it causes the increase in work hours. But the leisure seems to be rarely become inferior goods. Most commonly leisure is exampe of normal good.

Rahul Sunny answered 1 year ago

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