If leisure is a normal good the laffer curve can have an, Ask an Expert

Economics

If leisure is a normal good, the Laffer Curve can have an inverted U-shape only if leisure and consumption are (at least at some point) sufficiently substitutable such that the substitution effect (on leisure) outweighs the wealth effect (on leisure).

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Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M9678399

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