Asked by Kendrick Brown Jr. on Jul 22, 2024
Verified
Jessica receives a raise at her current part-time job from $9 to $11 per hour. If her labor supply curve is backward sloping, she will work fewer hours after receiving the pay raise.
Labor Supply Curve
A graph showing the relationship between wages and the quantity of labor workers are willing to offer, usually portraying a positive correlation.
Backward Sloping
Describes a demand curve that defies the usual law of demand, showing less quantity purchased as the price decreases.
- Understand the relationship between wages, labor supply, and the decision between labor and leisure.
Verified Answer
MM
Monica MendezJul 28, 2024
Final Answer :
True
Explanation :
A backward sloping labor supply curve suggests that as wages increase beyond a certain point, individuals will choose to work fewer hours, valuing leisure time more than the additional income.
Learning Objectives
- Understand the relationship between wages, labor supply, and the decision between labor and leisure.