The upward sloping portion of the supply curve for labor implies that
A)Higher wages lead to an increase in hours of work supplied
B)The law of diminishing returns has settled in
C)Higher wages lead to fewer hours of work supplied
D)A minimum wage law is in effect

Question

Quizplus · Accepted Answer

The upward sloping portion of the supply curve for labor indicates that as wages increase, workers are willing to supply more hours of work. This is consistent with the law of supply in microeconomics, which states that as the price of a good or service increases, the quantity supplied of that good or service will increase as well.

The Upward Sloping Portion of the Supply Curve for Labor