In general, the labor supply curve

Question

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The labor supply curve slopes upward because as the wage rises, the opportunity cost of leisure increases. Workers are willing to supply more labor at higher wages because they forego the option of leisure time, which becomes relatively more expensive compared to the higher wage. A downward-sloping labor supply curve would imply that workers supply less labor at higher wages, which contradicts the standard economic theory of labor supply. Options C and D are incorrect because they describe extreme cases where labor supply does not respond to changes in wages. Vertical labor supply implies that workers are willing to supply the same amount of labor no matter the wage rate, which is unlikely in reality. Perfectly elastic labor supply implies that workers are willing to supply any amount of labor at a given wage rate, which is also unlikely in reality.

In General, the Labor Supply Curve