If workers respond to an increase in the opportunity cost of leisure by taking less of it, their labour supply curve is backward sloping, while if workers respond to an increase in the opportunity cost of leisure by taking more of it, their labour supply curve is upward-sloping.

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The statement is reversed. If workers respond to an increase in the opportunity cost of leisure by taking less of it (i.e., working more), their labor supply curve is upward-sloping, indicating that as wages increase, they supply more labor. Conversely, if they respond by taking more leisure (i.e., working less), the labor supply curve could be backward sloping, showing that as wages increase beyond a certain point, they supply less labor.

If Workers Respond to an Increase in the Opportunity Cost