Your college roommate receives a pay raise at her part-time job from $9 to $11 per hour. She used to work 10 hours per week, but now she decides to work 15 hours per week. For this price range, her labor supply curve is

Question

Quizplus · Accepted Answer

An upward sloping labor supply curve implies that the higher the wage rate, the larger the quantity of labor supplied. In this case, the increase in pay from $9 to $11 per hour will likely cause the roommate to want to work more hours (from 10 to 15). This indicates an upward sloping labor supply curve.

Your College Roommate Receives a Pay Raise at Her Part-Time