ABSTRACT
Consumers face the problem of limited time. There are only 24 hours in a day, and thus the most fundamental choice that consumers face is whether to devote their limited time to leisure or work. We can consider the cost or price of leisure time as its opportunity cost or what has to be given up in order to enjoy leisure time. The opportunity cost of leisure time can be thought of as earnings that are lost through not working. An interesting question is what will happen to the trade-off between work and leisure when income changes? Let us consider the case of an increase income. There are two potential effects of an increase in income on the demand for leisure time.
