Scenario 14.1 A Worker in Firm a Earns an Income of $5,000

Scenario 14.1
A worker in Firm A earns an income of $5,000 per month. He has been offered a job in Firm B where he will be paid a salary of $7,000 per month.
-Which of the following best explains the shape of the individual labor-supply curve?

A) The individual labor-supply curve is exactly like any supply curve, it always has a positive slope.
B) The individual labor-supply curve slopes downward at all wage rates because, as wages increase, people are able to buy more leisure.
C) The individual labor-supply curve slopes upward at lower wage rates and then bends back at higher wage rates.
D) The individual labor-supply curve must be vertical because each person can work only eight hours per day.
E) The individual labor-supply curve must be horizontal because labor markets are assumed to be perfectly competitive.