tell me why it is BACKWARD bending 12seconds hint: income effect, substitution effect.
leisure has value, therefore as a worker accumulates more he wants more leisure as well, its the income effect or technically the subsitution then income effect
because eventually people have enough wealth and spending power that they get lazy and just want to spend/enjoy it thus they reduce their hours of production… something like that?
ya, higher wages, peoplework more, but at a certain pt, they wanna spend it
daj224 Wrote: ------------------------------------------------------- > ya, higher wages, peoplework more, but at a > certain pt, they wanna spend it That is why we are all here, right…lol
Does it look the same as the Laffer curve?
amberpower Wrote: ------------------------------------------------------- > Does it look the same as the Laffer curve? I think so, it is a similar concept.
That is what I thought too, thanks.