Use the following figure to answer the question : Figure 17-1 : shows the weekly income (in dollars) and leisure (in hours) of a worker using an indifference curve and a budget line.

-Refer to Figure 17-1.If the number of leisure hours is OL₃ after a change in the wage rate,the individual's supply curve of labor will be _____.

Question

Use the following figure to answer the question : Figure 17-1 : shows the weekly income (in dollars) and leisure (in hours) of a worker using an indifference curve and a budget line.

-Refer to Figure 17-1.If the number of leisure hours is OL₃ after a change in the wage rate,the individual's supply curve of labor will be _____.

Quizplus · Accepted Answer

If the number of leisure hours is OL₃ after a change in the wage rate, it falls within the range where the supply curve of labor is backward bending. This means that at higher wage rates, the individual may choose to work less and enjoy more leisure time.

Use the Following Figure to Answer the Question : Figure