Question

Worker A and Worker B both prefer to work 8 hours a day when their hourly wage is $12 an hour. They are currently working 8 hours a day and getting $12 an hour. Another employer wants to employ them only 6 hours a day (and requires them to not work in another job). Worker A will demand a higher wage to take the 6 hour job (compared to Worker B) when

	a.	worker A has a more curved (bowed in) set of indifference curves.
	b.	worker A has a less curves (less bowed in) set of indifference curves.
	c.	worker A has a higher income elasticity of demand for leisure.

Answer 1

Answer.) a.) worker A has a more curved (bowed in) set of indifference curves.

An indifference curve shows the combinations of goods to which a consumer is indifferent, meaning that the consumer gets the same degree of satisfaction from either good. An indifference curve is downward sloping by the assumption that "More is better". Indifference curves are bowed inward (in most cases). People are usually willing to trade away more of one good when they have a lot of it, and less willing to trade away goods which are in scarce supply.