Answer:
income
Step-by-step explanation:
Answer:
income effect
Step-by-step explanation:
In microeconomics, trade off can be theoretically explained as the estimate of similarities or dissimilarities that exist between monetary compensation received by employee from the employer and the pleasure gotten from leisure. And this could involve substitution effect and the income effect.
Note that the income effect is the alteration in demand for a good or service as a result of the effect on income of consumer while substitution the effect deal with alteration of the price of a good as a result of demand of that particular goods by customer.
Therefore,trade-off between work and leisure underlying the supply of labor involves the substitution effect and the income effect.