7 This does not imply that this household is kinky. It just means that the household is very reluctant to deviate from a fixed proportion between consumption and leisure. In case acm = 0, the indifference curves are at right angles, and nothing will make the household deviate from a fixed proportion between consumption and leisure.

173

(a) Flexible wage

/C/ dU

(b) Fixed consumer wage w N dU SW ED ESW 0 0 0 "'SW