The labor supply curve is positively sloped because:
A) more people are willing to work at low wages than at high wages.
B) more people are willing to work at high wages than at low wages.
C) employers are willing to hire more people at low wages.
D) employers are willing to hire more people at high wages.

Question

Quizplus · Accepted Answer

This is because as the wage rate increases, the opportunity cost of not working increases, and therefore more people are willing to work at higher wages. This results in a higher quantity supplied of labor at higher wage rates, leading to a positively sloped labor supply curve.

The Labor Supply Curve Is Positively Sloped Because