Jessica receives a raise at her current part-time job from $9 to $11 per hour. If her labor supply curve is backward sloping, she will work fewer hours after receiving the pay raise.

Question

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A backward sloping labor supply curve suggests that as wages increase beyond a certain point, individuals will choose to work fewer hours, valuing leisure time more than the additional income.

Jessica Receives a Raise at Her Current Part-Time Job from $9