Which of the following statements is TRUE?

Question

Quizplus · Accepted Answer

The market supply of labor is generally upward sloping because as wages increase, more people are willing to work or existing workers are willing to work more hours. However, an individual's labor supply curve may not always be upward sloping due to the income and substitution effects. At higher wages, an individual might choose to work less, valuing leisure more, which can lead to a backward-bending supply curve of labor.

Which of the Following Statements Is TRUE