-Refer to the diagram above. What is the significance of the point marked L1 at the bottom upward-sloping portion of the individual labor supply 2) curve?
A) as wages increase over this range, the quantity of hours worked also increases.
B) as wages increase over this range, the quantity of hours worked changes very little.
C) as wages increase over this range, the quantity of hours worked actually decreases.
D) as wages increase of this range, the quantity of hours worked is inelastic.

Question

-Refer to the diagram above. What is the significance of the point marked L1 at the bottom upward-sloping portion of the individual labor supply 2) curve?
A) as wages increase over this range, the quantity of hours worked also increases. 
B) as wages increase over this range, the quantity of hours worked changes very little. 
C) as wages increase over this range, the quantity of hours worked actually decreases. 
D) as wages increase of this range, the quantity of hours worked is inelastic.

Quizplus · Accepted Answer

The Answer is A

-Refer to the Diagram Above