-Peyton is a personal trainer and works at several gyms in her neighbourhood. Peyton's labour supply curve is shown above. Which of the following statements is true regarding Peyton's labour supply? i. Peyton is willing to supply more labour and give up leisure at wages between $50 and $75 per hour.
Ii) Peyton will not work for less than $30 per hour.
Iii) If the wage increases above $75 per hour, Peyton will choose to take more leisure.

Question

Quizplus · Accepted Answer

The statements accurately describe typical behaviors associated with labor supply curves. Statement i) reflects an increasing labor supply with increasing wages up to a point, ii) indicates a minimum wage below which Peyton will not work, and iii) suggests backward bending of the labor supply curve at higher wages, where increased income leads to a preference for more leisure over additional work.

-Peyton Is a Personal Trainer and Works at Several Gyms