Scenario 18-3
Jerry has two jobs,one for the winter and one for the summer.In the winter,he works as a lift attendant at a ski resort where he earns $10 per hour.During the summer,he drives a tour bus around the ski resort,earning $12 per hour.
-Refer to Scenario 18-3.Assume that Jerry has an upward-sloping labor supply curve.If the opportunity cost of Jerry's leisure time increases,he will respond by working

Question

Quizplus · Accepted Answer

Since Jerry's labor supply curve is upward-sloping, an increase in the opportunity cost of leisure time would mean that he would have to be compensated with higher wages to work the same number of hours. Therefore, to maintain a similar level of income, he would most likely respond by working more hours.

Scenario 18-3 Jerry Has Two Jobs,one for the Winter and One for One