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Labor supply curve is A

Economics Aug 06, 2020

Labor supply curve is A. Negatively sloped B. Positively sloped C. Vertical D. Horizontal Lütfen birini seçin: A. B. C. D.

Expert Solution

The supply curve of labor slants upward for the specialist whose inclinations are delineated .In any case, this result isn't generally the situation since pay impact of a higher compensation might be more noteworthy than the replacement impact. This makes the specialist work less at more significant compensation. This bodes well in light of the fact that past some point the specialist may want to work somewhat less with the goal that he can possess more energy for recreation. Along these lines he can appreciate the products of the higher pay that was made conceivable by his more significant compensation. Thus, a supply curve of work hours can be in reverse twisting past some pay rate. There are no unique conditions that are required for a retrogressive bowing supply curve; the main necessity is that the typical pay impact of a higher compensation surpasses the replacement impact.

Correct answer is b positively sloped

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