Refer to the information provided in Figure 28.1 below to answer the question(s) that follow. Figure 28.1
-Refer to Figure 28.1. If the value people put on their leisure time increases, the equilibrium wage rate

Question

Refer to the information provided in Figure 28.1 below to answer the question(s) that follow.  Figure 28.1
-Refer to Figure 28.1. If the value people put on their leisure time increases, the equilibrium wage rate

Quizplus · Accepted Answer

If the value people put on their leisure time increases, they may choose to work fewer hours, causing a decrease in the quantity of labor supplied, and an increase in the wage rate. This could shift the supply curve to the left, and the demand curve to the right. The new equilibrium could be at a higher wage rate and lower quantity of labor, such as $15 and 14 hours worked per day. Therefore, the equilibrium wage rate could change from $9 to $15.

Refer to the Information Provided in Figure 28