If Emma's individual labor supply curve is upward sloping,then Emma responds to an increase in

Question

Quizplus · Accepted Answer

If Emma's individual labor supply curve is upward sloping, it means that she is willing to work more hours at a higher wage rate. This is because the wage rate represents the opportunity cost of leisure time, and Emma prefers consuming more goods and services that require income earned from working. Therefore, an increase in the wage rate will encourage her to work more hours per week to earn more income. Option B is incorrect because an upward-sloping labor supply curve indicates that the opportunity cost of leisure decreases with a rise in wages. Therefore, Emma would have an incentive to work more rather than work fewer hours per week. Option C is incorrect because an upward-sloping labor supply curve suggests that Emma would be more likely to substitute leisure for work if the wage rate fell, not increased. Option D is incorrect because option B is incorrect.

If Emma's Individual Labor Supply Curve Is Upward Sloping,then Emma