As the wage rate rises,a household will have a backward-bending supply of labour curve if

Name: As the wage rate rises,a household will have a backward-bending supply of labour curve if
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Quizplus · Accepted Answer

The backward-bending supply of labor curve occurs when the income effect (which leads individuals to value leisure more as their income increases, thus working less) dominates the substitution effect (which would lead individuals to work more as the wage rate increases, substituting leisure for labor).

As the Wage Rate Rises,a Household Will Have a Backward-Bending