When a labor supply curve is backward-bending,the elasticity of labor supply in the backward-bending portion is
A)Negative.
B)Positive but less than 1.
C)Greater than 1.
D)Zero.

Question

Quizplus · Accepted Answer

When the labor supply curve is backward-bending, it means that at higher wages, the supply of labor decreases as individuals choose to work less and enjoy more leisure time. Therefore, the elasticity of labor supply in the backward-bending portion is negative, indicating that a change in wages will lead to a decrease in the quantity of labor supplied.

When a Labor Supply Curve Is Backward-Bending,the Elasticity of Labor