Unformatted text preview: leisure and consumption). If a person decides that they want leisure, then they will work less (or not at all), but this means that they won't be able to buy as many things. If they decide that they want to consume, then they will work more (or all of the time), but this means that they won't have as much free time to themselves. Their preferences for leisure (free time) and all other goods (consumption), combined with the current market wage, will determine what combination of leisure and all other goods they will choose, much in the same way that an individual's indifference curves and the market price of different goods will determine what combination of goods that individual will buy. Even though workers are the suppliers of labor, they make their working decisions in a manner similar to the way they make their buying decisions: based on preferences and price....
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- Fall '08