A decrease in the wage rate will have a smaller impact on hours worked if the:

Name: A decrease in the wage rate will have a smaller impact on hours worked if the:
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Question

Quizplus · Accepted Answer

If the labor supply curve is vertical, it means that the quantity of labor supplied is fixed, and therefore a decrease in the wage rate will not lead to any increase in the quantity of labor supplied. Hence, there will be no change in the hours worked, and the impact will be smaller compared to other slopes of the labor supply curve.

A Decrease in the Wage Rate Will Have a Smaller