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leisure as a normal good

Consider the problem of maximizing u(c,l) subject to pc + wl = w + y, where c is consumption, l (element of (0,1)) is leisure time, and y is non-wage income. Prove that leisure must be a normal good for the labour supply function to be downward sloping.

Please use direct methods and comparative stats.

Solution Summary

Prove that leisure must be a normal good for the labour supply function to be downward sloping.

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