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Why is the individual labor supply curve backward bending?
Why is the individual labor supply curve backward bending?
Expert Solution
The individual labor supply curve may be backward bending because of the rise in wages with a decline in the work done. That means that an individual's wages can increase, but the work assigned to them may decrease. This is caused by an increase in wages. According to the law of supply, an increase in monetary aspects leads to an increase in the products or services offered. However, when the individual curve is bending backward, the law of supply is discriminated against, and the law of demand is put in place. The law of demand indicates that an increase in monetary aspects will cause a decline in the use of a product or service. This is a negative sloping individual labor supply curve. It bases its concepts on the opposite of the law of supply hence said to be backward bending. This may also indicate negative economic growth.
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