Jane,who works at a publishing firm,chooses to work fewer hours following an increase in her wage.Which of the following is correct?

Question

Quizplus · Accepted Answer

A backward-bending labor supply curve occurs when an increase in wage rates initially causes an individual to work more hours, but at a certain point, further increases in wage rates lead to a decrease in the number of hours worked. This is because at higher wage rates, individuals feel that they can afford to take more leisure time and reduce their work hours. Therefore, Jane's decision to work fewer hours after a wage increase is indicative of a backward-bending labor supply curve.

Jane,who Works at a Publishing Firm,chooses to Work Fewer Hours