Answer:
the income effect now groverns your behaviour as you demand more leisure and the opportunity cost of leisure goes down
Step-by-step explanation:
- In economics, the cost of opportunity refers to when one person or business chooses one advantage over another.
- When a person wins the lottery, the person's income increases. This increase in income motivates the person to choose more leisure at work. This means the person is ready to leave work for leisure. In this way, the potential cost of the holiday is reduced.
- And with an increase in a person's income, a person's purchasing power improves. Increasing purchasing power means the person seeks more rest. Therefore, choosing to retire at work with an increase in income indicates an income impact. Therefore, if a person decides to quit his job, that person's behavior will be controlled by the income effect.