Beyond some point,a higher wage may induce an individual to work _____,and the labor supply curve may then _____.
A)more;bend backward
B)less;bend backward
C)more;slope downward
D)harder;become vertical

Question

Quizplus · Accepted Answer

As the wage increases beyond a certain point, the individual may feel that they are sufficiently compensated and may choose to work less. This means that the labor supply curve, which initially slopes upward, may bend backward as individuals reduce their labor supply at higher wages. Option A is incorrect because if an individual works more in response to higher wages, this would mean that the labor supply curve slopes upward, not bends backward. Option C is incorrect because if the labor supply curve slopes downward, it means that individuals are willing to work less as the wage rate decreases. Option D suggests that the labor supply curve becomes perfectly inelastic, meaning that individuals supply the same amount of labor regardless of the wage rate, which is not a typical scenario.

Beyond Some Point,a Higher Wage May Induce an Individual to Work