Your best friend receives a pay raise at her part-time job from $8 to $10 per hour.She used to work 16 hours per week,but now she decides to work 20 hours per week.For this price range,her labor supply curve is

Question

Quizplus · Accepted Answer

Since the friend's wage rate has increased, she is likely to substitute more leisure time for work. Hence, her labor supply is upward sloping reflecting that her willingness to work is dependent on the wage rate.

Your Best Friend Receives a Pay Raise at Her Part-Time