- In Figure 30.1,the shift in the labor supply curve from S 1 to S 2 means that

The shift in the labor supply curve from S1 to S2 means that workers are willing to supply more labor at each wage rate. This can only happen if the marginal utility of labor relative to leisure has increased.

- In Figure 30.1,the shift in the labor supply curve from S 1 to S 2 means that

The shift in the labor supply curve from S1 to S2 means that workers are willing to supply more labor at each wage rate. This can only happen if the marginal utility of labor relative to leisure has increased.

Solved

- in Figure 30

Question 34

Multiple Choice

- In Figure 30.1,the shift in the labor supply curve from S₁ to S₂ means that

A) The marginal utility of labor has decreased.
B) Workers are being paid higher wage rates,given their taste for work.
C) The marginal utility of labor relative to leisure has increased.

Correct Answer: