For any competitive labor market,changes that increase the opportunity cost of work will:

Question

Quizplus · Accepted Answer

Opportunity cost refers to the cost of foregone alternatives, in this case, the cost of not doing something else instead of working. If the opportunity cost of work increases, it means that the benefit of not working has increased relative to the benefits of working. As a result, fewer people will be willing to work, and the labor supply will decrease. Therefore, the supply curve will shift to the left.

For Any Competitive Labor Market,changes That Increase the Opportunity Cost