While individual labour supply curves may bend backward,market labour supply curves are likely to be upward-sloping throughout,since higher wages induce new workers to enter the labour market.

Question

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Individual labour supply curves may exhibit backward bending at high wage rates, meaning that individuals choose to work fewer hours as their wages increase beyond a certain threshold due to substitution and income effects. However, at the market level, the overall supply of labour is influenced by both existing and potential workers, hence a rise in wages will encourage more individuals to enter the labour market, resulting in an upward-sloping labour supply curve.

While Individual Labour Supply Curves May Bend Backward,market Labour Supply