Final answer:
When income effect dominates substitution effect for Roger, at higher wage ranges, he would prefer more leisure over income since both are normal goods and the increase in wages allows him to afford more leisure time.
Step-by-step explanation:
The question relates to the labor-leisure choice in economics and asks specifically about the income and substitution effects of a wage change for an individual named Roger.
The income effect refers to the change in consumption patterns due to a change in purchasing power, while the substitution effect describes the change in consumption due to change in relative price.
In the scenario where the income effect dominates the substitution effect, Roger would choose more leisure over income as his wage increases because both leisure and income are normal goods for him.
This point occurs at higher wage ranges where the increased income allows Roger to afford more leisure time, regardless of the opportunity cost of not working.
When dealing with higher wages, individuals who prioritize increased leisure are said to be experiencing a dominant income effect.
Alternatively, if lower wages incentivize more work due to the necessity of maintaining income, the substitution effect would be dominant.
However, the question focuses on the wage range where a higher level of wage leads to the preference for leisure over additional work, hence the dominance of the income effect.
It is important to note that this wage range can vary significantly from person to person based on individual preferences and economic circumstances.