If workers respond to an increase in the opportunity cost of leisure by taking less of it, their labour supply curve is:

Question

Quizplus · Accepted Answer

The labor supply curve is upward-sloping because as the opportunity cost of leisure increases (meaning leisure becomes more expensive in terms of forgone earnings), workers are incentivized to work more and take less leisure, thus increasing the quantity of labor supplied.

If Workers Respond to an Increase in the Opportunity Cost