Suppose that workers develop a greater taste for leisure, and thus require more time away from work. What is likely to happen to wages and the quantity of labor hired?

Question

Quizplus · Accepted Answer

When workers develop a greater taste for leisure, they will supply less labor at any given wage, shifting the labor supply curve to the left. This decrease in labor supply, with demand remaining constant, will lead to higher wages as employers compete for a smaller pool of workers. However, at these higher wages, employers will hire fewer workers, leading to a decrease in the quantity of labor hired.

Suppose That Workers Develop a Greater Taste for Leisure, and Thus