The labor supply curve
A) slopes upward to illustrate that more people will want to work as the real wage increases
B) slopes upward to illustrate that changes in the real wage are directly proportional to changes in the nominal wage
C) may slope either upward or downward,depending upon the real wage
D) slopes downward to illustrate that a decrease in the real wage decreases the number of individuals willing to work
E) slopes downward to illustrate that the availability of workers is directly proportional to the real wage

Question

Quizplus · Accepted Answer

The labor supply curve slopes upward to illustrate that as the real wage increases, more people will want to work. This is because a higher real wage makes work more attractive compared to leisure time, leading to an increase in labor supply.

The Labor Supply Curve