Ellen receives a raise at her current part-time job from $8 to $10 per hour. If her labor supply curve is upward sloping, she will work fewer hours after receiving the pay raise.

Question

Quizplus · Accepted Answer

An upward sloping labor supply curve suggests that as wages increase, individuals are willing to supply more labor (i.e., work more hours), contrary to working fewer hours.

Ellen Receives a Raise at Her Current Part-Time Job from $8