If consumption and leisure are complements then labour supply curve will have apositive slope.True/False/Uncertain. Explain.

The statement is Uncertain.

The slope of the labour supply curve depends on the relative strengths of the income and substitution effects of a wage increase.

If consumption and leisure are complements, an increase in wage rate makes leisure more expensive relative to consumption. This is the substitution effect, which encourages more work and less leisure, suggesting a positive slope of the labour supply curve.

However, there's also the income effect to consider. If the wage rate increases, the worker's income increases, and they may choose to "spend" some of this additional income on more leisure, since leisure and consumption are complements. This would suggest a negative slope of the labour supply curve.

So, whether the labour supply curve has a positive slope (more work as wages increase) or negative slope (less work as wages increase) depends on which effect is stronger, which can vary between different individuals and circumstances. Hence, the statement is uncertain.