If farmers work harder and longer to maintain their incomes and living standards as their earnings per hour fall, that would involve:
A)an exception to the downward slope of the demand curve for labor.
B)an exception to the upward slope of the supply curve for labor.
C)a confirmation of the downward slope of the supply curve for labor.
D)a confirmation of the upward slope of the supply curve for labor.
E)none of the above.

Question

Quizplus · Accepted Answer

According to the law of supply, if the price (earnings per hour in this case) for a good or service falls, the quantity supplied of that good or service decreases. Therefore, as earnings per hour fall for farmers, we would expect them to supply less labor. However, if they work longer and harder to maintain their incomes and living standards, that would be an exception to the upward slope of the supply curve for labor, indicating that farmers are willing to supply more labor at lower wages than the supply curve would suggest. Therefore, option B is the correct answer.

If Farmers Work Harder and Longer to Maintain Their Incomes