The labour supply curve
A)shows the relationship between the wage rate and the quantity of labour supplied.
B)shows the quantity of jobs supplied at various wage rates.
C)is unit-elastic.
D)is U-shaped.

Question

Quizplus · Accepted Answer

The labour supply curve shows how the quantity of labour supplied by workers changes in response to changes in the wage rate. As the wage rate increases, the labour supply curve shows that more workers are willing to supply their labour, while at lower wage rates, fewer workers are willing to supply their labour. Therefore, the correct answer is A. B is incorrect because the labour supply curve does not show the quantity of jobs supplied, but rather the quantity of labour supplied by workers. C is incorrect because the elasticity of the labour supply curve depends on various factors and can differ depending on the specific circumstances. D is incorrect because the shape of the labour supply curve can vary depending on the specific circumstances as well.

The Labour Supply Curve