If a worker respond to an increase in the opportunity cost of leisure by taking more leisure, then her labor supply curve is

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Quizplus · Accepted Answer

Backward sloping labor supply curve means that as the wage rate increases, the worker initially increases the labor supply, but after a certain point, further increases in the wage rate lead to a decrease in the labor supply because the worker takes more leisure time due to the higher opportunity cost of leisure.

If a Worker Respond to an Increase in the Opportunity