Exhibit 12-10

-Sam,Mike,and Fiona are the only suppliers of labor in the market for structural engineers.Their individual supply schedules are in Exhibit 12-10.Which of the following statements is incorrect?

Question

Exhibit 12-10
 
-Sam,Mike,and Fiona are the only suppliers of labor in the market for structural engineers.Their individual supply schedules are in Exhibit 12-10.Which of the following statements is incorrect?

Quizplus · Accepted Answer

A backward bending supply curve means that at higher wages, workers are willing to work less, which contradicts the basic law of supply. None of the individual supply curves are backward bending, but if we add them up, we may end up with a backward bending market supply curve. However, based on the information given in Exhibit 12-10, we cannot confirm whether the market supply curve is backward bending or not. Therefore, statement C is incorrect. Statements A, B, D, and E may all be true based on the information given.

Exhibit 12-10 -Sam,Mike,and Fiona Are the Only Suppliers of Labor in the of Labor