The elasticity of labor supply does not depend on
A)The demand for labor.
B)The prices of consumer goods.
C)Income and wealth.
D)Expectations for income or consumption.

Question

Quizplus · Accepted Answer

The elasticity of labor supply is primarily concerned with how the quantity of labor supplied responds to changes in wages, not the demand for labor. Demand for labor affects the wage rate offered by employers, but the decision of how much to work at given wage rates (elasticity of labor supply) is influenced by factors like the prices of consumer goods, income, wealth, and expectations, not directly by the demand for labor itself.

The Elasticity of Labor Supply Does Not Depend on