Points on a compensated labor supply curve are always more elastic than points for corresponding wage levels on a regular labor supply curve.

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Quizplus · Accepted Answer

Compensated labor supply takes into account not only the direct wage rate, but also other factors such as non-wage benefits and changes in the opportunity cost of leisure. Therefore, individuals may be more responsive to changes in these other factors, resulting in a more elastic labor supply curve compared to a regular labor supply curve that only considers changes in the wage rate.

Points on a Compensated Labor Supply Curve Are Always More