When workers purchase more leisure and work less at higher wages, the supply curve is
A)vertical.
B)horizontal.
C)positively sloped.
D)backward bending.

Question

Quizplus · Accepted Answer

When workers have higher wages, they have an income effect that leads them to prefer more leisure time. As a result, the labor supply curve becomes upward-sloping at lower wages, but beyond a certain point, it begins to bend backward. Therefore, when workers purchase more leisure and work less at higher wages, the supply curve is backward bending.

When Workers Purchase More Leisure and Work Less at Higher