An increase in the wage rate will cause the labor supply curve to shift to the right.

Question

Quizplus · Accepted Answer

An increase in the wage rate would result in a movement along the labor supply curve rather than a shift in the curve itself. An increase in the wage rate would incentivize more individuals to offer their labor, resulting in a higher quantity supplied at each wage level, which would lead to a movement along the labor supply curve rather than a shift to the right or left.

An Increase in the Wage Rate Will Cause the Labor