
Which of the following helps to explain why the supply curve of labor is upward sloping?
A) The supply curve of labor is a derived supply curve; since the output supply curve is upward-sloping, so is the labor supply curve.
B) As the wage rate rises, the income effect causes the quantity of labor supplied to increase.
C) The substitution effect of a price change makes a good less expensive relative to other goods.
D) As the wage rate rises, the opportunity cost of leisure rises.
Correct Answer:
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Q102: The labor supply curve
A)shows the relationship between
Q103: Figure 17-4 Q104: Which of the following statements is true? Q106: Figure 17-4 Q107: In general, the labor supply curve Q108: The market supply curve for labor is Q109: The income effect of a wage increase Q110: Figure 17-4 Unlock this Answer For Free Now! View this answer and more for free by performing one of the following actions Scan the QR code to install the App and get 2 free unlocks Unlock quizzes for free by uploading documents
A)As
A)slopes downward
A)derived