As the market wage rate increases,it will exceed more individuals' reservation wage rates;this ensures the market supply of labor curve will be upward sloping.

Question

Quizplus · Accepted Answer

The reservation wage rate refers to the minimum wage rate that an individual is willing to accept to supply labor. As the market wage rate increases, more individuals will be willing to supply labor as it exceeds their reservation wage rate. Therefore, the market supply of labor curve will be upward sloping.

As the Market Wage Rate Increases,it Will Exceed More Individuals