Scenario 18-3
Gabrielle has two jobs, one for the winter and one for the summer. In the winter, she works as a lift attendant at a ski resort where she earns $16 per hour. During the summer, she drives a tour bus around the ski resort, earning $11 per hour.
-Refer to Scenario 18-3. If Gabrielle takes more hours of leisure in the winter than in the summer, we can assume that her labor supply curve for the range of earnings in this example

Question

Quizplus · Accepted Answer

If Gabrielle takes more hours of leisure in the winter when she earns more ($16 per hour) than in the summer when she earns less ($11 per hour), it suggests that as her wage increases, she initially supplies more labor but then chooses to work less and take more leisure time. This behavior is characteristic of a backward-bending labor supply curve, where the curve bends backward at higher wage levels as individuals opt for more leisure over additional income.

Scenario 18-3 Gabrielle Has Two Jobs, One for the Winter and One