As wage rises, the opportunity cost principle leads to a _____ in the number of hours supplied and a _____ in the number of hours demanded in the labor market for marketers.

Question

Quizplus · Accepted Answer

According to the opportunity cost principle, as wage rises, the cost of leisure time increases, leading to a rise in the number of hours supplied. At the same time, employers would try to reduce their labor costs by hiring fewer workers, leading to a fall in the number of hours demanded. Therefore, the correct answer is D.

As Wage Rises, the Opportunity Cost Principle Leads to a _____