=+8.2 Suppose that an invention has just resulted in everyone being able to cut their sleep requirement

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=+8.2 Suppose that an invention has just resulted in everyone being able to cut their sleep requirement by 10 hours per week, thus providing an increase in their weekly leisure endowment.

A. For each of the following cases, can you tell whether a worker will work more or less?

a. The worker’s tastes over consumption and leisure are quasilinear in leisure.

b. The worker’s tastes over consumption and leisure are homothetic.

c. Leisure is a luxury good.

d. Leisure is a necessity.

e. The worker’s tastes over consumption and leisure are quasilinear in consumption.

f. Do any of your answers have anything to do with how substitutable consumption and leisure are? Why or why not?

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