An increase in the wage rate will always cause more labor to be supplied.

Name: An increase in the wage rate will always cause more labor to be supplied.
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Question

Quizplus · Accepted Answer

While it's often assumed that higher wages will incentivize more labor supply, the relationship isn't always direct due to factors like income and substitution effects. Higher wages can lead to a point where individuals prefer leisure over additional work, thus not always increasing labor supply.

An Increase in the Wage Rate Will Always Cause More