00:01
Okay, so if leisure is a normal good for an individual, it means that as their income, then they will demand more leisure.
00:24
This tendency can then impact the shape of the individual's labor supply curve.
00:29
So the labor supply curve dynamics, well, it's upward sloping.
00:33
Traditionally, an upward sloping labor supply curve implies that as wages increase, individuals are willing to work more because the opportunity cost of not working, in other words, the income foregone by enjoying leisure, is going to be higher.
00:50
And then the impact of leisure as a normal good, well, if leisure is a normal good, the relationship might not be straightforward.
00:57
So as income increases, possibly due to higher wages, then individuals may value leisure more and might choose to work less, counteracting the traditional upward slope...