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OpenStudy (anonymous):
suppose that worker faces two commodities : work and leisure. the per hour wage rate is $16 at early stage, but gradually , the wage rate goes down due to economic slowdowns. Given such scenario answer the followings A. Which good would be normal to workers before and after slow down of the economy? Explain by relating to ranking and choice.(3 pts) B. Analyze the work-leisure decision of such worker after slowdown of the economy(4 pts)
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