At low wages, the labor supply curve for most people slopes upward because: A. as wages increase,...

Question:

At low wages, the labor supply curve for most people slopes upward because:

A. as wages increase, income also increases unless hours worked decrease.

B. the demand for labor is perfectly elastic at low wages.

C. as wages increase, the opportunity cost of leisure increases.

D. the supply of labor is perfectly inelastic at low wages.

Labor Supply:

Labor supply simply indicates the willingness of workers in the context of workers' working hours. This shows how the workers decide to get employed for the certain working hours to accomplish their jobs at the different amounts of market wage rates.

Answer and Explanation: 1

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C. as wages increase, the opportunity cost of leisure increases

When the market wages are lower, then fewer workers are indulged in production. As...

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Understanding Shifts in Labor Supply and Labor Demand

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Chapter 7 / Lesson 4
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Learn about the labor supply and demand curves in economics. Explore the labor supply and demand curve shifts, and study the factors that impact both curves.


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